Corporate transparency: key considerations after Companies House reforms

For many years, the UK has been one of the easiest and most attractive places to set up a company or LLP. Incorporation could be completed quickly and at low cost, with minimal verification and limited regulatory intervention. Companies House acted mainly as a record keeper, accepting information without routinely verifying its accuracy or legitimacy.

That’s now changed, following a series of reforms introduced under the Economic Crime and Corporate Transparency Act 2023. For international entities with UK companies or LLPs within their group structures, these reforms carry significant legal, operational and governance implications.

How do Companies House reforms affect UK businesses?

The UK reforms reflect a global trend as regulators respond to the misuse of corporate structures for money laundering, sanctions evasion, tax avoidance and fraud. The UK government has committed to making its corporate register more accurate, reliable and transparent.

Companies House is now expected to identify, challenge and remove misleading information. UK companies will face higher levels of scrutiny, regardless of where directors, shareholders or beneficial owners are based.

Companies House can now question, reject or remove filings that appear inconsistent, incomplete or misleading. It no longer accepts information at face value. This is particularly relevant for companies with complex ownership structures, offshore elements or unusual control arrangements, which may attract closer scrutiny.

What are the new identity verification requirements?

A key change is mandatory identity verification for directors, people with significant control (PSCs) and anyone filing information on a company’s behalf. This applies to non-UK residents too.

Directors and PSCs must verify their identity either directly with Companies House or via an Authorised Corporate Service Provider (ACSP). Failure to do so may result in sanctions or restrictions on a company’s ability to operate.

New directors must complete identity verification before incorporation or appointment. Existing directors have a 12-month transition period to verify their identity and must do so before the company’s next confirmation statement filing deadline. Acting without verification is an offence for both the individual and the company. New and existing PSCs are subject to similar verification requirements and timelines.

What are the new registered office and filing agent rules?

UK companies must now maintain a registered office that is genuine, traceable and able to receive official documents. Any agent filing information on behalf of a company – including formation agents, accountants or legal advisers – must be registered as an ACSP and supervised under the UK’s anti-money laundering regime. International groups relying on third-party providers should check that they are fully compliant.

Companies House also has stronger enforcement powers, including the ability to impose financial penalties, annotate the public register, request corrections to filings and strike off non-compliant entities. Fees have risen to reflect its expanded regulatory role.

What should international groups do now?

International entities should anticipate that UK companies within their group will now face active oversight. This has clear implications for governance, risk management and strategic planning. Boards should coordinate compliance carefully across jurisdictions and ensure corporate information is accurate, consistent and easy to explain.

While these reforms inevitably increase administrative and compliance burdens, international groups can take practical steps to manage the transition effectively. These include:

• Identifying and reviewing all UK-registered companies and LLPs in the group, with particular focus on directors and PSCs
• Completing identity verification within required timeframes, seeking legal support where necessary
• Reviewing registered office arrangements to meet new requirements and monitor them properly
• Strengthening governance oversight and seeking legal advice to prioritise Companies House compliance.

The UK is entering a new era of corporate transparency. Companies House is no longer a passive record keeper but an active regulator with enhanced powers to verify, challenge and enforce.

International entities should remember that UK companies need closer oversight, stronger governance and a proactive approach to compliance.