UK Company Law Enters New Era of Transparency and Enforcement

9th October 2025

The UK's corporate landscape is undergoing its most significant transformation in nearly 20 years as a series of new measures tighten company regulation and transparency requirements. The reforms, introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), are being phased in through to 2027, reshaping the way companies are formed, managed, and scrutinised.

From Record Keeper to Regulator

For decades, Companies House has operated largely as a passive registrar. Under the ECCTA, it is becoming an active regulator with enhanced powers to verify, query, and remove false or misleading information from the corporate register.

The first wave of changes, which took effect on 4 March 2024, requires all UK companies to maintain a verifiable registered office address, provide an email contact, and confirm that their business activities are lawful. Companies House now has the authority to demand supporting evidence and annotate the register where information appears suspect.

Criminal Penalties Replaced by Civil Fines

Further changes, effective 2 May 2024, gave the Registrar new enforcement tools, including the ability to impose financial penalties for certain breaches without resorting to criminal prosecution. At the same time, Companies House increased a range of fees to reflect its expanded oversight role.

Identity Verification: The Cornerstone of Reform

A central feature of the new regime is mandatory identity verification. From 18 March 2025, Authorised Corporate Service Providers (ACSPs) will be required to register with Companies House to carry out identity checks.

Voluntary verification for directors, shareholders with significant control, and company filers begins 8 April 2025, before the system becomes mandatory between autumn 2025 and autumn 2026. New directors and PSCs will have to verify their identity on appointment, while existing companies will need to comply when filing their next confirmation statement.

From spring 2026, only verified individuals or authorised agents will be permitted to file documents on behalf of a company.

New Corporate Offence Targets Fraud

In a landmark move, a new "Failure to Prevent Fraud" offence will come into force on 1 September 2025. Large organisations those meeting at least two of the following thresholds over 250 employees, turnover above £36 million, or total assets over £18 million — could face prosecution if an employee or associate commits fraud for the company's benefit.

Firms will have a defence if they can demonstrate "reasonable fraud prevention procedures," details of which the government is expected to publish in 2025.

Greater Disclosure and Digital Filing

Looking ahead, by April 2027 all company accounts will need to be filed digitally through approved software. The long-standing option to submit abridged accounts will be abolished, meaning small companies must disclose fuller financial information.

This change is part of a broader push to improve data quality and ensure consistency across the corporate register.

Privacy and Data Protections

The ECCTA also seeks to balance transparency with personal privacy. By summer 2025, individuals will be able to request the suppression of sensitive information such as residential addresses and signatures from historic filings where disclosure could pose a safety risk.

A Shift in Corporate Culture

Business groups and compliance professionals say the reforms represent a cultural turning point. "Companies House is no longer just a registry it's a regulator," said one London-based corporate lawyer. "Directors and shareholders will face a new level of scrutiny, and transparency will become the default."

The reforms, together with tougher anti-fraud enforcement and digital filing requirements, mark a decisive step in the UK's efforts to enhance corporate accountability and strengthen its reputation as a clean, trustworthy business environment.

Crucial date for Directors - 18 November 2025.

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