Economic Crime and Corporate Transparency Act 2023

The Economic Crime and Corporate Transparency Act 2023 – what does this mean for my business?

On 4th March 2024, Companies House introduced its first set of changes brought in by The Economic Crime and Corporate Transparency Act 2023 (ECCTA). These are some of the biggest changes that have been made at Companies House since 1844 when corporate registrations were established.

It is therefore important to know what is changing for you and your company so that you can take action at the right time.

Why are the changes being made?

The UK has one of the world’s largest and open economies making it an attractive playing field for global business. This in turn opens the risk to economic crime including fraud, money laundering, and the abuse of UK corporate structures to fund serious and organised crime in the UK.

These changes will give Companies House a more prominent role in tackling economic crime and improve economic growth, transparency, and accuracy of information held within company registers.

What changes are being introduced?

A company’s registered office address must be an ‘appropriate address’
Companies must provide a Lawful Purpose Statement on incorporation and in each annual confirmation statement
New identity verification systems for directors and people with significant control (PSCs) on incorporation and confirmation of verification for existing companies
Increase in Companies House fees
Requirement for all companies to provide a registered email address
Requirement to file a Confirmation Statement at least once a year confirming that the information held by Companies House is up to date, even if there have been no changes
Transition towards filing accounts by “software only” to allow more efficient and secure filings for companies and improve the quality of the data on the register
Small and micro-entity companies to file their profit and loss accounts
Improved transparency of company ownership and up to date lists of shareholders
Increased registration and transparency requirements for limited partnerships

If you have any questions about how any of the above implementations might affect your business or need guidance on how to comply with the new changes, get in touch with our corporate and commercial team for expert advice and guidance.