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The UK’s Companies House is undergoing a major transformation under the Economic Crime and Corporate Transparency Act. Armed with new powers to query, reject and penalise suspicious filings, the agency is cracking down on fraud and misuse of company structures. This marks a shift from passive registrar to active gatekeeper of corporate integrity.

Companies House takes on new enforcement powers to combat economic crime under the ECCTA transformation agenda.

<p>The UK government has released a second official progress report detailing the transformation of Companies House under the <a href="https://www.legislation.gov.uk/ukpga/2023/56" target="_blank" rel="noopener">Economic Crime and Corporate Transparency Act 2023</a> (ECCTA or the Act). The report highlights positive results in the UK’s efforts to tackle economic and corporate crime, and demonstrates how Companies House is implementing changes brought in by the Act.</p>
<p>Where once Companies House operated primarily as a passive register, the Registrar is now taking on the role of active gatekeeper. According to the report, recent enforcement and intelligence efforts have already had real-world effects on criminal activity and data reliability.</p>
<h2>From passive registrar to economic crime gatekeeper</h2>
<p>Economic crime is estimated to cost the UK tens of billions of pounds annually, with some studies suggesting it may even reach <a href="https://www.tax.org.uk/APPG-economic-crime-report-July-2025" target="_blank" rel="noopener">hundreds of billions</a>. One of the core aims of ECCTA is to deter and disrupt these offences by strengthening the gatekeeping role of Companies House. Companies House now has far-reaching new powers, including the ability to query and remove inaccurate data, enforce penalties, reject suspicious incorporations, and share intelligence directly with law enforcement, with further changes <a href="https://www.linnearlegal.co.uk/resources/upcoming-changes-eccta-businesses/" target="_blank" rel="noopener">anticipated</a> in future.</p>
<p>In a <a href="https://www.gov.uk/government/news/new-powers-yield-real-world-impact-in-companies-house-economic-crime-crackdown?utm_content=&amp;utm_medium=email&amp;utm_name=&amp;utm_source=govdelivery&amp;utm_term=" target="_blank" rel="noopener">government press release</a>, Louise Smyth, Chief Executive of Companies House, said: ‘Our latest report demonstrates how we’re strengthening the UK’s business environment by taking direct action against those misusing corporate structures, while improving the accuracy and reliability of our register for legitimate businesses.’</p>
<h2>Companies House interventions</h2>
<p>Between March 2024 and March 2025, Companies House challenged 100,400 companies for potentially false or misleading data. This includes:</p>
<ul>
<li>registered office addresses (82,600)</li>
<li>officer addresses (66,900)</li>
<li>persons with significant control (PSC) addresses (55,100)</li>
<li>incorporation documents (49,800)</li>
<li>additional documents (11,200).</li>
</ul>
<p>In many cases, the false or misleading data highlighted relates to identity hijacking – the unauthorised use of individuals’ names or addresses – to create the appearance of legitimacy for fraudulent activity.</p>
<p>Companies House has also started to work with data partners to identify companies listing deceased individuals as active officers or PSCs. While sometimes the result of poor record-keeping, this can also indicate deliberate deception.</p>
<h2>Rejections, penalties and dissolutions</h2>
<p>Companies House is now taking proactive steps to reject suspicious applications. Over the past year, 10,200 applications were turned down, including those linked to mass incorporations at the same address, which can be considered a red flag for money laundering.</p>
<p>It has also begun piloting the use of financial penalties to drive compliance. This pilot, which focused on the most serious late filers of confirmation statements, resulted in:</p>
<ul>
<li>419 warning notices</li>
<li>192 penalty notices issued</li>
<li>48 entities bringing their filings into compliance</li>
<li>12 penalties paid</li>
<li>33 companies opting for voluntary dissolution.</li>
</ul>
<h2>Growing intelligence capabilities</h2>
<p>Companies House’s Intelligence Hub is central to its expanded enforcement role. To date, Companies House has generated approximately 850 intelligence reports, with around 600 referred to enforcement partners including:</p>
<ul>
<li>The National Crime Agency</li>
<li>HMRC</li>
<li>The Insolvency Service</li>
<li>UK policing bodies</li>
</ul>
<p>This reflects the impact of Companies House’s new data-sharing powers, which are enabling real-time collaboration across departments. Dave Magrath, Director of Investigation and Enforcement Services at The Insolvency Service, commented: ‘The Insolvency Service’s close collaboration with Companies House is delivering positive results in the fight against economic crime … Together, we’re building a more robust and trusted business environment that benefits legitimate companies while making the UK much harder for fraudsters to operate in.’</p>


Louise Smyth

Our latest report demonstrates how we’re strengthening the UK’s business environment by taking direct action against those misusing corporate structures, while improving the accuracy and reliability of our register for legitimate businesses.

<h2>Cracking down on corporate abuse</h2>
<p>Working closely with the Insolvency Service, Companies House has <a href="https://www.nationalcrimeagency.gov.uk/news/11-500-uk-companies-struck-off-companies-house-register-after-crackdown?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBEwTmtOMWczM0hsV3BxN2xEVQEePzpEwMKmKyw7KTMT31m6_VHiuy1FKReOCHIxY-L6b50q0waQCaRzckEIfB4_aem_OtZxRHjWgCCN2M1YgfVYXg&amp;utm_content=&amp;utm_medium=email&amp;utm_name=&amp;utm_source=govdelivery&amp;utm_term=" target="_blank" rel="noopener">struck off 11,500 UK companies</a> from the Companies House register, and has intervened at 16 sites tied to over 30 entities responsible for incorporating 30,000 to 50,000 companies linked to illicit activity.</p>
<p>It has also analysed more than 100,000 shell companies believed to be involved in online gambling fraud, cryptocurrency and forex scams, cybercrime and proliferation financing, and identified around £50 million in UK property held through corporate structures linked to organised crime, which is now subject to asset recovery proceedings.</p>
<h2>Updates to the Register of Overseas Entities (ROE)</h2>
<p>Although introduced under a previous Act (the <a href="https://www.legislation.gov.uk/ukpga/2022/10/contents" target="_blank" rel="noopener">Economic Crime (Transparency and Enforcement) Act 2022</a>), the ROE continues to form a vital part of the UK’s anti-money laundering landscape.</p>
<p>As of March 2025:</p>
<ul>
<li>30,400 entities are registered on the ROE</li>
<li>The register has been searched more than 2.8 million times</li>
<li>1,500 entities have been removed using a new digital deregistration tool launched in April 2024</li>
</ul>
<p>Companies House continues to scrutinise the ROE for non-compliant overseas entities, working with the Land Registries and other authorities. Entities that have not registered or failed to update their information face legal restrictions on selling or acquiring UK property.</p>
<p>A major upcoming reform is the implementation of section 174 of the ECCTA, which will require entities to declare individuals who were beneficial owners during the transitional period between the announcement of the legislation and the date of registration. This is designed to close a known transparency loophole.</p>
<h2>Looking ahead: the ECCTA rollout timeline</h2>
<p>The report sets out a detailed implementation roadmap extending through to 2026:</p>
<h3>Summer 2025</h3>
<ul>
<li>Access to trust information on the ROE by request</li>
<li>Option for individuals to suppress certain personal details (e.g. date of birth, signatures)</li>
</ul>
<h3>Autumn 2025</h3>
<ul>
<li>Mandatory identity verification for all new directors and PSCs</li>
<li>Start of 12-month transition for over 7 million existing directors and PSCs to verify identity via confirmation statements</li>
</ul>
<h3>Spring 2026</h3>
<ul>
<li>Mandatory identity verification for anyone filing documents</li>
<li>Requirement for third-party agents to be registered as Authorised Corporate Service Providers (ACSPs)</li>
<li>Rejection of filings submitted by disqualified directors unless delivered via an ACSP</li>
</ul>
<h3>End of 2026</h3>
<ul>
<li>Full extension of identity verification to all individuals on the register</li>
<li>Enhanced data-sharing with other public and private bodies</li>
<li>Expanded disclosure requirements for limited partnerships</li>
<li>Compliance action against unverified individuals</li>
</ul>
<h2>Marking a cultural shift in UK corporate regulation</h2>
<p>Through the ECCTA, Companies House is acquiring not only legal powers but a greater focus on preventing the misuse of UK company structures. Businesses and advisers should expect more active oversight, more frequent interventions and a higher bar for data accuracy. For legitimate businesses, this transformation brings long-term benefits: more credibility, less risk and a fairer competitive landscape.</p>
<p>Read the full progress report <a href="https://assets.publishing.service.gov.uk/media/685010789d538361ad2da732/second-progress-report-on-the-implementation-and-operation-of-parts-1-to-3-of-the-economic-crime-and-corporate-transparency-act-2023.pdf" target="_blank" rel="noopener">here</a> and <a href="https://linnearcms.wpenginepowered.com/get-in-touch/">contact a lawyer</a> at Linnear Legal for further advice on making your company compliant with ECCTA requirements.</p>


New enforcement powers under ECCTA are helping Companies House tackle fraud, reject suspicious filings, and enhance the reliability of UK corporate information.

UK government releases second ECCTA progress report

Companies House is now enforcing new powers under ECCTA to combat corporate crime and improve UK business transparency and integrity.

UK government releases second ECCTA progress report | Linnear Legal

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UK government releases second ECCTA progress report

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