Companies House Transition Plan: Are you preparing?

Companies House has now published a roadmap for transition into full implementation of the significant and complex changes under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). It sets out a framework with key dates and the impact of changes for the business community as a whole.

Readers may welcome a helpful reminder of the registrars’ overarching objectives of the sweeping overhaul of Companies House in view of the ECCTA. If businesses and directors bear these objectives in mind it may help them appreciate what they need to do ensure they are compliance – and how they can do so.

Those objectives including ensuring 1. The companies register information is and remains accurate and contains everything it should; 2. that companies records do not create a false or misleading impression to the public; and 3. to preventing companies and others from carrying out or facilitating illegality.

Key highlights

Importantly, new responsibilities for both new and existing company director will be introduced; people with significant control of a company (PSCs); as well as for those filing information on behalf of a company.

Unsurprisingly, Companies House fees will increase to account for the costs of implementation and ongoing operations.

Various changes already implemented over the past year include new steps to improve the quality and accuracy of information on the companies register; improved CH investigation and enforcement; and powers to issue financial penalties for relevant offences under ECCTA and the Companies Act.

What’s to come?

Business community should particularly note the following dates and consider how they can prepare ahead of implementation. The changes to come will require around 50 statutory instruments before they can be implemented, to the timetable is not set in stone.

· Between now and into 2025 – CH should be able to expedite striking off of companies formed for a false basis

· By summer 2025 - allow access on request to certain trust information on the Register of Overseas Entities

· By autumn 2025 - identity verification to become compulsory for incorporation and new appointments for new directors and PSCs, along with a year-long transition period for existing directors/PSCs to verity identity

· By spring 2026 – introduce compulsory identify verification for those filing documents

· By 31 December 2026 – all LLPs to be required to submit more information (but no further information is as yet available)

What should we do?

We urge all companies, directors and LLPs to understand the importance of the ECCTA and the increasing legal powers and responsibilities of CH in that respect. Preparing effectively for the upcoming changes is vital.

And as specific dates for implementation of the various measure become known, we will be covering them here.

If you would like us to cover an issue in the next NGM Tax Law Newsletter, we would be pleased to hear from you