The changes will have significant consequences for UK companies and anyone who owns or runs one. Not only will the changes impact shareholders, directors and secretaries, it is likely to have an effect on anyone involved in filing documents at Companies House.
Central to the reform is the new role of Companies House who has described itself as ‘moving from being a passive collector of information to an active guardian of corporate transparency’. Due to the magnitude of this change, the reform is being implemented gradually. It is essential that you understand your obligations under the ECCTA, as a breach could result in criminal liability, fines and other enforcement actions.
1. Statutory registers
Historically, UK companies were required by law to keep and maintain a set of statutory registers, such as a register of members, directors, and people with significant control (PSC). The ECCTA changed this requirement so that, as of 18 November 2025, the only register required by law is a register of members. The idea is that the public register at Companies House will replace localised records. The ECCTA has also expanded the scope of the register of members; for example, a shareholder’s full name must be included.
In light of these new requirements, the need for accurate information in relation to shareholders is imperative, and directors should carefully review and update their records where appropriate. The abolition of most company registers also increases the importance of the information at Companies House, with the potential for penalties, fines and public mark ups to be issued to companies and officers in default.
2. Changes to corporate directors
If your company has a corporate director, you should start to plan for any potential changes that may be required. The use of corporate directors is being restricted under the ECCTA to make it easier to establish who the decision-makers of a company are.
Under the Companies Act 2006, a company could appoint another legal entity (such as another company) as a director, rather than a natural person, such directors are known as corporate directors. Once the new rules are in force, overseas entities will no longer be permitted to act as corporate directors, and companies registered in the UK can only be appointed where its board are all individuals who have each verified their identity.
Where a company breaches the ECCTA, it may face a penalty, and its directors may have committed a criminal offence. Directors should also carefully consider their duties as directors under the Companies Act 2006 in relation to the ECCTA, for example to act in the company’s best interest, as any breaches of such duties could lead to a claim brought against the director by the company.
3. Identity verification
The ECCTA has introduced a requirement for certain people to verify their identity at Companies House. Identity verification is being rolled out gradually, with the initial 12-month transition period, which commenced on 18 November 2025, ending shortly.
It is important to note that additional categories of people will be caught by the regulations as they are implemented by Companies House. As such, if you have any involvement in a UK company, you should carefully consider whether you need to verify your identity and the deadline for doing so.
4. Shareholder information at Companies House
Although no date has been announced yet, in due course, every company will be required to file a one-off confirmation statement at Companies House which must include list of each shareholder’s full names and shareholding. The idea is that these filings will make it easier to find information on a company should you need to do so.
5. Business occupation for directors
One of the aims of the ECCTA is to make the information collected by Companies House proportionate and relevant. In line with this approach, a director’s business occupation will no longer be required.
If you wish to discuss this further, please do not hesitate to contact Iola Cameron by email: iac@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon
Originally published in Crowborough News: https://crowborough.news/
