Companies House: Improving transparency in company ownership

Transparency in company ownership is set to take a significant leap forward with planned measures under the Economic Crime and Corporate Transparency Act. While an implementation date has not yet been confirmed, these updates aim to curb economic crime and enhance corporate accountability by introducing new requirements for businesses registered with Companies House.

If you own or manage a company, we’re breaking down what you need to know about these changes and how they might affect your organisation.

What’s changing?

The new measures focus on improving the visibility of company ownership, ensuring shareholders and corporate directors are more accountable.

1. Shareholder information:
   • Companies will now need to record the full names of individual shareholders, or the names of corporate members and firms, in their registers.
   • A comprehensive, one-off list of shareholders must be provided to Companies House. This will enable shareholder information to be displayed in a clearer, more accessible format.

2. Persons with significant control (PSC):
   • Companies claiming an exemption from providing PSC details will need to supply additional information, including the reason for the exemption.
   • Companies House will also collect and publish the conditions allowing a Relevant Legal Entity (RLE) to be listed as a PSC.

3. Restrictions on Corporate Directors:
   • Only UK corporate entities with legal personality can now serve as corporate directors.
   • The directors of these corporate entities must be natural persons who verify their identity.

When is this taking place?

 While the new measures under the Economic Crime and Corporate Transparency Act have been outlined, an official implementation date has yet to be confirmed. The government is expected to introduce these changes in phases, with further guidance anticipated in the coming months.

Why these changes matter

 The aim of these updates is to make ownership structures more transparent, limiting opportunities for misuse and enhancing trust in UK businesses. By standardising shareholder and director information, Companies House can better support efforts to combat financial crimes like fraud and money laundering.

Planning your next steps

 Preparation is key to staying compliant with these new regulations. Here are 4 ways you can get started:

• Review your company’s shareholder records to ensure accuracy and completeness.
• Prepare to submit the required shareholder list to Companies House when requested.
• Understand whether your company qualifies for PSC exemptions and ensure you have the necessary supporting information.
• If your company uses corporate directors, verify their eligibility and ensure the directors meet the new identity verification requirements.

 Get in touch

At Verallo, we specialise in helping businesses navigate regulatory changes like these. Whether you need advice on compliance or tools to streamline your corporate governance processes, we’re here to help. Get in touch by emailing us at info@verallo.com or calling 0203 912 9933.