Companies House is now blogging regularly on the changes that are coming with the Economic Crime and Corporate Transparency Bill, now making its way through Parliament.  

This bill is intended to radically reform how Companies House operates, make the register of companies far more reliable and useful, and protect the public from fraud and financial crimes.

As ever, it can be argued that reforms like these without commensurate investment in investigation and enforcement cause a great deal of headaches for legitimate businesses without really stopping the criminals, but anyone who has found information held at Companies House to be unreliable will appreciate any improvement in the integrity of the register.

Following Companies House blogs is a good way for directors to keep on top of the changes that are coming, of which there are many, but in particular I'd highlight a couple of points.

Firstly, the need to verify the identity of every director and PSC (person with significant control). This will apply to every existing company, as well as new incorporations; directors will not be able to act if they are not verified.

The precise process is to be confirmed, but it is intended that a straightforward online system (of the upload a passport and take a photo on your phone variety, as is used in many industries) will enable quick and easy verification. It is to be hoped that the process is easy, as there is likely to be only a short transitional period before the new rules kick in and unverified directors are prevented from acting.

Secondly, there are changes being made to the requirements for filing company accounts. All filing will have to be done through software, so the existing paper filing and webfiling options will no longer be possible. Small companies will also be obliged to file their profit and loss accounts, so it would be a good idea for directors of small companies to make sure their accounting practices are fit for purpose ahead of time.

There is no timetable yet for the bill to become law, but it will make a major impact when it does.