Companies House is making progress on implementing reforms required by the Economic Crime and Corporate Transparency Act 2023, according to a Department for Business and Trade report.

The report, published at the end of May 2024, considers the progress Companies House has made in implementing and operating the first phase of reforms (parts 1 to 3 of the Act), which received Royal Assent in October 2023.

The Economic Crime Act imposes new requirements on companies, limited partnerships, and other corporate entities, including the registration of overseas businesses. It is being introduced as part of the UK government’s push to improve corporate transparency.

Parts 1 to 3 of the Act cover:

• Reforms of Companies House processes and new statutory functions and objectives for the Registrars of Companies.
• Reforms of the laws that apply to limited partnerships.
• New provisions relating to the Register of Overseas Entities, which was introduced by the Economic Crime (Transparency and Enforcement) Act 2022.

Companies House rolled out the first phase of reforms on 4 March 2024. This covered the systems, processes and organisational changes needed to operate the new registrars’ objectives and powers, and new legal requirements for companies.

According to the report, between 4 March and 1 April, Companies House has:

• Commenced the process to remove names and addresses used without consent, including People of Significant Control (PSC) and shareholders (previously, those wishing to have their details removed would have had to apply to the courts).
• Removed 4,000 registered office addresses.
• Removed 2,100 officer addresses and 2,300 PSC addresses.
• Redacted 3,600 incorporation documents to remove personal data used without consent.
• Removed 1,250 documents from the register, including 800 false mortgage satisfaction filings, which would have previously required a court order.
• Contacted 3,800 companies with PO Boxes as their registered office address, to make them aware that this would no longer be legally compliant and requiring them to provide an alternative appropriate address. As of 1 April 2024, the number of companies on the register using a PO box has reduced to 1,900.

Companies House has dubbed the reforms required as “the biggest changes for our work since we began registering companies in 1844”. The changes will strengthen the role of the Department for Business and Trade’s executive agency in a bid to tackle economic crime.

The Economic Crime Act has six parts, and the government is rolling out the reforms required in stages.

This is just the first step in a major implementation programme,” said Kevin Hollinrake, Minister of State in the Department for Business and Trade. “Over the coming years new capabilities and requirements will be introduced.

“Strong partnerships are already being put in place with other public agencies and with the private sector, who I know are keen to support these reforms and reap the benefits,” he continued.

“The phased introduction of these changes will, over time, level the playing field for all businesses, ensuring the UK’s open economy remains a world class centre for businesses to grow and prosper.

“They are another step towards us making the UK’s economy the best regulated in the world,” said Hollinrake.

May’s progress report is the first in a series of updates the Department for Business and Trade will give to Parliament. The Department for Business and Trade is due to make progress reports on the implementation and operation of parts 1 to 3 of the Economic Crime Act every 12 months until 2030.

Read the full progress report here.

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