How to prepare for the Companies House reforms

Companies House has set out its 2025–30 strategy, introducing major reforms to modernise the UK’s corporate framework, support economic growth, and strengthen transparency.

Building on recent legislative changes, it marks a shift to more active regulation and outlines key steps businesses must prepare for.

Evgeni Pratashchyk, corporate solicitor in Lodders’ Business Services group, sets out what these changes mean for businesses and shares some practical steps for companies to prepare.

“The trusted guardian of corporate transparency”

The five-year strategy from builds on the transformative reforms introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) – the most significant overhaul of Companies House in its 180-year history.

The new strategy marks a decisive shift, positioning Companies House as an active and trusted gatekeeper of corporate integrity rather than solely a recipient of information. By 2030, its stated aim is to become the “trusted guardian of corporate transparency”, ensuring that UK company data is accurate, authoritative, and globally respected. 

Key objectives driving the strategy

Companies House has shared six strategic objectives that will shape its operations over the next five years:

1. Authoritative and transparent data

Leveraging new ECCTA powers, Companies House will query, remove, and annotate inaccurate filings. Enhanced data quality will increase trust and unlock economic value for businesses and stakeholders. 

2. Preventing and disrupting economic crime

The agency will expand its intelligence capabilities, conduct regular strategic assessments, and collaborate with enforcement partners to tackle misuse of UK corporate structures. Expect greater use of combined data, penalties, and criminal sanctions to deter wrongdoing. 

3. Implementing company law reforms

ECCTA reforms will introduce compulsory identity verification (IDV) for directors and Persons with Significant Control (PSCs), tighten registration requirements for limited partnerships, and provide controlled access to trust information on the Register of Overseas Entities. These measures aim to enhance transparency and reduce abuse of corporate vehicles. We’ve answered the most frequently asked questions on IDV requirements and directors’ duties in this recent blog.

Please note: Lodders does not provide identity verification services and cannot complete this process on your behalf. Directors are personally responsible for compliance.

4. Seamless customer services

Companies House will continue its digital transformation, integrating services with GOV.UK platforms and apps to deliver a streamlined, user-friendly experience for legitimate businesses. 

5. Modernising technology

A major infrastructure overhaul will introduce secure, scalable, and efficient systems, including cloud migration and AI-driven analytics to improve compliance monitoring and risk detection. 

6. Evolving organisational culture

Workforce planning and skills development will ensure Companies House staff are equipped to meet future challenges, reinforcing its role as a proactive regulator. 

Implications for businesses

For UK companies, these changes are far-reaching. Identity verification becomes mandatory from late 2025, with strict deadlines for directors and PSCs. Failure to comply will constitute an offence and may result in rejected filings or disqualification. From 2027, digital filing of accounts will also be compulsory, requiring businesses to adopt compliant software solutions. 

The ECCTA is also introducing a new corporate offence of failure to prevent fraud, extending liability to senior management. This underscores the need for robust governance and internal controls across all organisations.

Prepare now for the Companies House reforms

We see the Companies House reforms as a positive step toward creating a more transparent and resilient business environment. While they bring exciting opportunities, they also introduce new compliance considerations that businesses should plan for thoughtfully. To stay ahead, you may want to consider the following:

• Review director and PSC records to prepare for identity verification requirements
• Refresh governance frameworks to reduce fraud risks and align with evolving legal obligations
• Explore digital solutions in readiness for upcoming e-filing requirements
• Seek guidance from trusted advisers to navigate the changing regulatory landscape with confidence

Further information and support

Please note that from 18 November 2025, all new and existing company directors and people with significant control (PSC) will need to verify their identity with Companies House. For further details, directors are encouraged to consult the official government guidance on how to verify your identity for Companies House and on how to register your business as an ACSP.

Please note: Lodders does not provide identity verification services and cannot complete this process on your behalf. Directors are personally responsible for compliance.

Trusted legal advice

Lodders’ Corporate team helps clients selling and buying businesses typically in the £3-20m deal size range as well as on group reorganisations and related corporate matters. To get in touch, please contact Graham Spalding and Evgeni Pratashchyk at the Business Services group today.