Introduction
The UK’s corporate landscape is set to undergo significant reforms through the phased implementation of the Economic Crime and Corporate Transparency Act (ECCTA). The ECCTA is aimed at enhancing transparency of corporate records and deterring economic crime. These reforms, managed by Companies House, are being rolled out in phases, with full implementation targeted for completion by 2027.
Summary of the ECCTA’s Phased Implementation by Companies House
By Winter 2024 into 2025:
- Expedited Striking Off Powers: The Registrar will gain the authority to expedite the removal of companies that are found to have been formed on false pretences.
- Register Annotations: The Registrar will be empowered to annotate the register to indicate false or inaccurate information.
By Spring 2025:
- Checks on Authorised Corporate Service Providers (ACSPs): Companies House will undertake commence checks on ACSPs to authorise them for conducting verification services.
- Voluntary Identity Verification: Individuals will be given the option to verify their identity voluntarily.
- Residential Address Suppression: Companies House will begin assessing applications from individuals who wish to suppress their residential addresses from public disclosure.
By Summer 2025:
- Access to Trust Information: Companies House will start providing access, upon request, to certain Trust information held on the Register of Overseas Entities.
By Autumn 2025:
- Mandatory Identity Verification: Identity verification will become a compulsory part of the incorporation process for new directors and People with Significant Control (PSCs).
- 12-Month Transition Phase: All existing directors and PSCs will be required to complete identity verification, linked to their annual confirmation statement filings.
By Spring 2026:
- Compulsory Verification for Document Presenters: Verification will be mandatory for individuals presenting documents for filing.
- ACSP Registration Requirement: Third-party agents filing on behalf of companies must be registered as an ACSP.
- Rejection of Documents by Disqualified Directors: Companies House will reject documents submitted by disqualified directors.
By the End of 2026:
- Enhanced Limited Partnership Information: All limited partnerships will need to provide additional information.
- End of Transition Period: The 12-month transition period will conclude, and compliance measures will be enforced against those who have not verified their identity.
These changes aim to strengthen corporate transparency and deter economic crime, ensuring that all relevant parties comply with stringent verification and reporting standards by 2027.
Dixcart previously provided an update on these proposed changes and the previous article can be found here: The Economic Crime and Corporate Transparency Act 2023 – The Proposed Changes to Companies House Explained – Dixcart UK
Full details from Companies House can be found here: Economic Crime and Corporate Transparency Act: outline transition plan for Companies House – GOV.UK
If you have any questions and/or would like advice on the above topic, please contact us at: hello@dixcartuk.com or your usual Dixcart contact.
