The Biggest Change to Companies House in a Generation Is Happening. Is Your Business Ready?

For many founders, Companies House has always been something you think about once a year: File your confirmation statement; submit your accounts; tick the compliance box and move on.  

But that approach is about to change.  

The reforms being rolled out under the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”) represent one of the most significant changes to UK company law in decades. While much of the discussion has focused on tackling fraud and improving corporate transparency, these changes will affect thousands of genuine businesses across the UK.  

Whether you're a start-up, a scaling SME or an established business, this is more than a compliance update. It's a shift in how Companies House operates and how businesses will be expected to engage with it.  

Why are these changes happening?  

For years, Companies House has been criticised for acting largely as a passive register, accepting information without verifying the accuracy of the information being filed.  

The reforms are designed to change that. The aim is to create a register that is reliable, transparent and more difficult to exploit for fraud, money laundering and economic crime.  

For legitimate businesses, that's good news.  

A register people can trust benefits everyone from founders seeking investment to suppliers carrying out due diligence and customers deciding who to work with.  

What are the key changes?  

Introducing the changes under the ECCTA have been a staggered process that has been gradually rolling out since early 2024 and are expected to continue until April 2028. While this helps companies to manage the new requirements gradually, it also means that it’s important for businesses to stay on top of when new processes become mandatory.  

Identity verification is becoming mandatory.  

Directors, People with Significant Control (PSCs) and others filing information with Companies House will need to verify their identity. For many businesses, this will be a completely new process.  

• For new companies and directors, this process has been mandatory since November 2025.  

• For existing directors, they will need to have their identity verified in advance of filing their first confirmation statement (since 18 November 2025).  

• For existing PSCs, they will need to verify their identity and submit a statement to Companies House confirming that they have completed identity verification – timeframes differ depending on whether the PSC is also a director.  

All identity verification should be completed by November 2026. This timeframe is important for companies to monitor, as Companies House will start taking compliance activity against those who have failed to verify their identity in time.  

Although it may feel like another administrative step, it's intended to ensure that the people behind UK companies are who they say they are, helping to protect the integrity of the register.  

Companies House will become much more proactive.  

Historically, Companies House had limited powers, now going forward, it will have greater authority to:  

• Query information that appears inaccurate.  

• Reject filings where appropriate.  

• Request supporting evidence.  

• Remove incorrect information from the public register.  

• Issue fines and take other enforcement actions for non-compliant companies, directors and PSCs.  

Companies House is moving from simply recording information to actively helping to ensure that the information it holds is accurate.  

Governance is no longer just for large organisations.  

One of the biggest misconceptions we see is that governance only matters once a business reaches a certain size.  

In reality, good governance starts on day one and is a sign of a well-run business, not only does it help businesses keep accurate company records and ; understanding director responsibilities, it enables businesses to stay on top of their legal and regulatory requirement, and ensuring the right people are making the right decisions.  

Why founders should pay attention now  

When you're building a business, it's easy to focus on sales, fundraising, marketing and growth. Compliance often ends up at the bottom of the to-do list but the strongest businesses don’t just see legal compliance as an inconvenience. They see it as part of building credibility. Investors notice good governance. Partners notice good governance. Clients notice good governance.  And increasingly, regulators will too.  

There are also real consequences for not meeting compliance requirements. Since mid-2024, Companies House have been empowered to issues fines of up to £10,000 for breaches of the ECCTA and Companies Act 2006.    

This is about more than regulation.  

At Hemisphere Consultants, we often say that legal support shouldn't simply help businesses avoid problems, it should help them build confidence.  

The Companies House reforms are intended to create a business environment where trust matters, transparency is expected and businesses that invest in strong foundations are better positioned to grow.  

For many founders, particularly those building their first business, this is an opportunity to review company records, understand director responsibilities, strengthen governance before it becomes urgent and build a business that's not only ambitious, but resilient.  

Questions every business should be asking  

As these reforms continue to roll out, it's worth asking:  

• Are our Companies House records accurate and up to date?  

• Do our directors understand their legal responsibilities?  

• Are we prepared for identity verification requirements?  

• Is our governance keeping pace with our growth?  

If the answer to any of those questions is "I'm not sure," now is the right time to seek advice.  

Final thought  

The UK's business landscape is evolving. Founders today are expected to think beyond growth alone. Transparency, accountability and trust are becoming competitive advantages, not just regulatory requirements.  

Businesses that embrace these changes early won't simply be compliant, they'll be building organisations that inspire confidence in investors, customers, employees and partners alike.  

At Hemisphere Consultants, we believe legal support should empower businesses to grow with confidence, not fear. The Companies House reforms are a reminder that getting the foundations right create the stability to build something that lasts.  

What are your thoughts on the upcoming Companies House reforms?  

Do you see them as a positive step towards greater transparency, or another compliance burden for UK businesses? We'd love to hear your perspective in the comments.