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Thinking of Selling Your Business? Why the Exit Isn’t Always the Fairytale Ending – And What You Can Do About It

Posted on: June 27th, 2025 by Alanah Lenten

Founders often fantasise about their exit moment. The final deal. The payout. The celebratory glass of champagne. But for many, that long-anticipated milestone can feel more like shouting, “I’m an owner – get me out of here!” than stepping into happily ever after.

At Lawrence Stephens, we’ve worked with enough founders to know that for them, this  moment is rarely as clean or triumphant as we make it look on paper. The due diligence process alone can feel like a mental obstacle course, one where founders are asked to revisit every decision, every contract, every risk, while simultaneously letting go of the business they’ve poured their soul into.

And it’s not just the paperwork that makes selling-up challenging, there’s a deeply human side to it that often goes unspoken. We spoke with Lucy Scarlett, founder and coach at Lumini, who specialises in helping entrepreneurs prepare emotionally and mentally for what comes next. She shared insights into the 3 most common feelings her clients experience and how they can navigate them.

The Invisible Side of the Exit

1. Loss of identity
“This business has been my baby.”
We hear it all the time. Your company has been more than just your job – it’s been your title, your purpose, your structure, your story. So what happens when it’s no longer yours? Without that title to define you, the age-old question “Who am I now?” can creep in, bringing emptiness, anxiety and the dread of facing that void again.

2. Survivor’s guilt
Once the deal is done, it’s natural to worry about the people left behind.
“Did I abandon my team?” or “Are they really okay under new leadership?”
These kinds of thoughts are more common than you might think. Lucy explains that some founders even find themselves quietly checking in long after they’ve left, leading to sleepless nights or a temptation to micromanage post-exit.

3. The exit that isn’t quite the dream
Even the smoothest sales come with unexpected twists: tax surprises, legal constraints, new leadership culture clashes. The version of the exit you told yourself in your head doesn’t always match reality. That doesn’t mean it wasn’t the right move but it does mean you may need space to process and recalibrate.

So, How Can Founders Prepare?

Lucy’s advice to clients is simple but powerful: You are not your business.
It’s a mindset shift that can take months to accept. After all, when your daily purpose, income and impact are all wrapped up in something you created from scratch, it’s hard to imagine life without it. But the earlier you start to separate who you are from what you’ve built, the smoother your exit will feel.

That means:

  • Getting clear on your values and what truly drives you.
  • Giving yourself permission to grieve the business (yes, really).
  • Planning your post-exit chapter with as much energy and vision as you did your first pitch deck.

She recommends creating a clear transition checklist of everything you can control to remind you you’ve set the business up for success, and remind yourself that part of building something great is knowing when to step away.

Whether your next step is launching something new, stepping into advisory work or simply taking a well-earned pause, it’s important to remember: you get to choose the shape of your next chapter and that’s where Lucy can support.

What We See That Works

At Lawrence Stephens, we’re big believers in the full exit picture. We’re here to handle the legal details, the negotiation curveballs, and the structural finesse that gets deals over the line. But more than that, we’re human. We know how big this is for you.

We’ve helped founders manage complex exits, protect what they’ve built, and move on with clarity and confidence. We’ll support you through the parts you dread and make sure the deal reflects your value.

A Final Thought

If you’re thinking of selling, or even just entertaining the idea, take a moment to reflect. Not just on your share price or growth curve – but on you. How do you want to feel once it’s done? What do you need in place, practically and emotionally, to make that happen?

Selling a business isn’t just a transaction. It’s a transformation. And with the right people by your side, it can be a powerful one.

If you want to find clarity on what your next step looks like, feel free to drop Lucy an email at Lucy@luminicoaching.com— or if you’d like support navigating the legal process, contact Charlotte Hamilton. 

Read the other articles in this edition here : The Fineprint – Edition 1 – July 2025 – Lawrence Stephens

Lawrence Stephens advises Kaleidex Group on its acquisition of OxDevice Ltd.

Posted on: June 18th, 2025 by Ella Darnell

Lucy Cadley led a cross-disciplinary team from Lawrence Stephens alongside overseeing director Katherine Zangana and was closely supported by Avni Patel, Becci Collins, Leigh Sayliss and Craig Mullen in advising Kaleidex Group, an Ansor portfolio company, on its acquisition of OxDevice Ltd.

Kaleidex, backed by private equity firm Ansor, acquires and integrates high-performing medical manufacturing companies, building a network of expertise and innovation to drive industry advancements. This strategic acquisition of OxDevice, a precision engineering and manufacturing company based in Abingdon, Oxfordshire, is Kaleidex’s third acquisition and expansion into the rapidly growing neurovascular and endovascular device sectors.

The transaction demonstrates our collaborative and commercial approach, bringing together expertise from our Corporate & Commercial, Real Estate, Employment and Tax teams to deliver a seamless service tailored to the need for an integrated approach towards complex corporate matters.

Commenting on the deal, Lucy said:
“Delivering this transaction was a fantastic example of what Lawrence Stephens does best, working closely across departments and alongside our client’s leadership team to deliver pragmatic, forward-thinking advice that helps clients scale their businesses with confidence”

Lawrence Stephens advises Kaleidex Group on its acquisition of Denis Limited and Oracle Precision Limited

Posted on: June 18th, 2025 by Ella Darnell

Isobel Moran led a cross-functional team from Lawrence Stephens, along with overseeing director Katherine Zangana, supported by Avni Patel, Ewan Ooi and Craig Mullen, to advise Kaleidex Group (an Ansor portfolio company) on its acquisition of Densis Limited and its wholly owned trading subsidiary, Oracle Precision Limited.

The transaction highlights our commercial and collaborative ethos, with expertise drawn from our Corporate & Commercial and Commercial Real Estate teams to deliver a seamless and integrated service tailored to the fast-paced demands of SME acquisitions in the medical manufacturing sector.

This was Kaleidex Group’s second successful acquisition, completed within just three months of instruction. The swift execution of the deal further strengthens our client’s strategic growth trajectory in the precision engineering space—supporting the development of critical components for the medical industry.

Commenting on the deal, Katherine said:
“This was a great example of how our team brings together technical expertise and insight to help our client’s complete transactions quickly and decisively. It’s always a pleasure to support their growth journeys with another successful acquisition.”

Lawrence Stephens advises on the acquisition of historic Cotswolds pub for redevelopment

Posted on: June 11th, 2025 by Alanah Lenten

Bradley Lee and Charlotte Hamilton from our Corporate team, alongside Angela McCarthy and Nick Marshall from the Commercial Real Estate team, have advised Rafic Said on the acquisition of the entire issued share capital of The Cotswold Cock Inn Ltd, a corporate structure used to acquire the company’s principal asset: a characterful pub in the Cotswolds.

With planning permission already in place, Rafic intends to redevelop and re-open the pub, breathing new life into the site and bringing a new hospitality offering to the area.

The transaction highlights the strength of Lawrence Stephens’ collaborative, cross-disciplinary approach. By structuring the deal through a corporate acquisition, the team was able to deliver an efficient solution that balanced both commercial and legal priorities, while unlocking real value for the client.

Bradley Lee commented:
“This is an example of where Lawrence Stephens flourishes, combining our Corporate and Commercial Real Estate expertise to work seamlessly as a team and help our clients realise their ambitions.”

Rafic Said added:
“Lawrence Stephens were exceptional throughout, commercially astute, approachable, and solutions-focused. Their expertise gave me real confidence at every stage of the process.”

Lawrence Stephens advises Fidelius on its investment in Vobis

Posted on: May 9th, 2025 by Natasha Cox

Lawrence Stephens has advised Top 100 financial planning firm Fidelius on its acquisition of a non-controlling stake in Vobis, a London and Yorkshire-based IFA.

Founded in 2013, Vobis, which manages over £140m in client assets, specialises in financial planning for high-net-worth individuals and operates a joint venture with a top 60 accountancy practice in central London. The firm also has a regional office in Leeds.

The deal marks the first investment by Fidelius since Swedish wealth manager Söderberg & Partners took a minority stake in the business at the start of 2024.

The Lawrence Stephens’ team was led by Corporate and Commercial Director Jeff Rubenstein, supported by Associate Harshita Samani, Solicitors Lucy Cadley and Avni Patel, and Trainee Electra Kallidou.

Jeff Rubenstein commented: “While this was our first transaction for Fidelius, this assignment was the latest in a series of transactions we have advised on in the rapidly consolidating Financial Services industry. We very much enjoyed working with the Fidelius team, their energy and ambition very much reflects our own ethos and we look forward to working with them in the future”.

Richard Armstrong, Head of Governance, Risk and Compliance at Fidelius responded: “We are grateful for the advice and support provided by the team at Lawrence Stephens. The team were proactive and responsive, and their can-do approach helped move this important transaction along. Our ambition is to be a top 20 IFA and more acquisitions are likely.”

Find out more about our Corporate and Commercial services here

Corporate and Commercial Spring Newsletter

Posted on: April 9th, 2025 by Alanah Lenten

Read our Spring Newsletter here

Letter from the Editor Charlotte Hamilton

It has been a busy first quarter of 2025 in the corporate, commercial and employment sectors.

In this edition of our Newsletter, I have summarised the report issued by the Investment Security Unit of the Government (ISU) on the effectiveness of the National Security and Investment Act 2021 (Notifiable Acquisition) (Specification of Qualifying Entities) Regulations 2021 (NARs). For businesses in the 17 sectors considered sensitive, the NARs dictate whether a notification must be made to the ISU for any proposed acquisition having considerable impact on the timing of an acquisition.

Becci Collins, Solicitor in our Employment team, has summarised the new right introduced by the Statutory Neonatal Care Pay (General) Regulations 2025 for parents to take neo-natal care leave, to receive statutory neo natal care pay and what steps employers should be taking now.

Ewan Ooi, trainee in our Banking team and Samantha Aldridge, paralegal in our Employment team discuss the importance of careful drafting in legally binding agreements and how it can protect businesses.

They summarise two cases highlighting how enforceability depends on the use of clear and precise wording and why legal advice is needed when drafting the terms of commercial agreements and employment contracts.

Please see the key dates section for upcoming corporate, commercial and employment law updates and as always, please be in touch with any queries.

We will be discontinuing this newsletter after this edition. It will be replaced by our brand new newsletter: ‘The Fineprint’.

The Fineprint

‘The Fineprint’ is designed for founders, entrepreneurs, and owner-managed businesses who are passionate about growing their ventures and staying informed about the latest industry trends and legal updates.

If you’re a business owner, startup founder, or an entrepreneur looking to gain insights, practical advice, and inspiration, this newsletter is for you.

For more information please see here, You can opt out at any time.

James Lyons comments on private equity and retail businesses in Retail Sector

Posted on: April 7th, 2025 by Natasha Cox

Director in the Corporate and Commercial team, James Lyons, comments on the trend of private equity firms investing in retailers, and discusses how these growth strategies can benefit both business and private equity buyers.

James’ comments were published in Retail Sector, 4 April 2025, and can be found here.

Speaking with Retail Sector about the trend of publicly listed retailers taking private equity, James explains that “if the business continues to benefit from access to institutional capital, stock liquidity, and the other advantages that come with a listing, then remaining public makes sense.”

He states that there are challenges that come with this, noting “the costs of listing, the scrutiny, and the increased pressure, especially with rising employer and NI costs, all add up. When those burdens become greater than the benefits, it’s easy to see why more retail companies are opting to go private.”

Commenting on the recent acquisitions of Walgreen Boots Alliance by private equity, James told Retail Sector that “Sycamore’s acquisition of Walgreens includes Boots, but that’s just one part of the wider business. A number of commentators believe that Sycamore will likely spin off Boots to focus more on the US retail market. It’s possible we could see Boots reappear on the public markets, perhaps through a demerger and a new listing in the UK. Alternatively, it could be sold to another private equity firm or a trade buyer.

“While it’s hard to predict exactly what form it will take, I’m sure the brand will endure.”

James explains that, for private equity firms looking for retailers to invest in, “it’s about identifying where investment can generate increased returns over the next few years and ensuring the business is positioned for long-term sustainability. Take Boots, for example. Its pharmacy element is heavily regulated, which may be of interest to some private equity firms, but not necessarily to all.”

James also notes that “retailers that can leverage technology to strategically enhance their business are likely to attract more private equity interest. Ultimately, the future of retail is moving towards digital, making it a key area for private equity firms, rather than traditional high street retail.” 

Speaking on the evolution of this sector, James commented “Retail now is very different from what it was two decades ago. It’s a blend of the traditional high street and the rapidly expanding online retail sector. The rise of digital technology and AI interfaces has really shaped the way consumers shop today. Private equity firms bring both expertise and investment, particularly in the digital and e-commerce space. Traditional retailers may not have had the same level of expertise or know-how, and that’s where private equity can make a real difference.”

He goes on to argue that this is not the be all and end all of business, stating that “public listings can still be a credible option for the right business at the right point in its cycle, if done for the right reasons. So, I don’t see this as a long-term trend. For example, it’s not beyond the realms of possibility that Boots could come back to the public markets at some point, if it makes sense for the business.

James concludes by suggesting that, overall, the strategy of the private equity firms is key to such deals, and that these are questions retailers must consider

“There has to be a commercial deal that works for both parties. What are the intentions of the new owner? What areas do they plan to invest in? Where do they see future growth? Is this the right owner to take the business to the next level?” 

To find out more about our Corporate and Commercial services, click here. To find out more about our services in the Retail sector, click here.

 

Key dates to enhance transparency and prevent crime within UK business

Posted on: March 3rd, 2025 by Hugh Dineen-Lees

As a reminder to those in charge of company administration, the Economic Crime and Corporate Transparency Act (ECCTA) became law in October 2023. It set out a phased timeline for new requirements on businesses to enhance transparency and prevent crime within UK business. In this summary we highlight the upcoming key dates to note.

We have reported on the objectives of ECCTA in this article by Isobel Moran.

From 25 March 2025 – Identity Verification

From 25 March 2025, individuals may voluntarily verify their identity directly with Companies House or via an Authorised Corporate Service Provider (ACSP). Identity verifications apply to all new and existing company directors and people with significant control. They also apply to members of LLPs.  

Identity verification will become compulsory and so it is advisable to do this as soon as possible to avoid missing the compulsory deadline. If you need any guidance or assistance, please be in touch.

Missing the deadline is an offence. The consequences include financial penalties and may prevent you from being able to make other filings on behalf of existing companies or setting up a new company.

From 27 January 2025 – Suppression of Personal Information

From 27 January 2025, individuals can apply to supress personal information from historical documents such as their home address, date of birth, signatures, and business occupation.

Additional protection will be available to those at risk of harm by protecting their information from public view.

From spring 2026 – Changes to Limited Partnerships

From spring 2026, LPs must: 

  • provide partners’ names, date of birth and usual residential address
  • verify the identity of general partners
  • provide a registered office address in the UK – this must be in the same country the LP is registered in, for example a LP registered in Scotland must have a registered office address in Scotland
  • provide a standard industrial classification (SIC) code
  • file an annual confirmation statement

LPs will need to file their information through an Authorised Corporate Service Provider (ACSP).

There will be new powers to:

  • close and restore LPs
  • apply sanctions
  • protect partners’ information
  • operate a statutory compliance process

These changes for LPs will be implemented following secondary legislation and so we are continuing to monitor these changes.

Please see our initial report on the objectives of ECCTA here. We will continue to provide updates as they come into effect. Now is the time to start taking action to verify the identity of the individuals behind your organisation. If you need any guidance or assistance, please be in touch.

Sole directors under the Model Articles of association

Posted on: February 20th, 2025 by Hugh Dineen-Lees
  • The High Court has once again expanded on the confusing area of sole director decision making, where a company has adopted the Model Articles.

Confusion within the Model Articles

It is widely accepted that the Model Articles are free from inconsistencies and are suitable for all company incorporations. However, the Model Articles has faced scrutiny in the High Court on numerous occasions, as their suitability for companies with a sole director has been questioned.

Article 7(2) of the Model Articles states that if (a) the company only has one director, and (b) no provision of the articles requires it to have more than one director, the general rule does not apply, and the director may take decisions without regard to any of the provisions of the articles relating to directors’ decision-making.

On the other hand, Article 11(2) stipulates that the minimum number of directors required to hold a board meeting must be at least two (i.e., the quorum for a board meeting is two) and that no other decisions can be made (as a sole director) save for appointing another director.

The case of Hashmi v Lorimer Wing [2022] concluded that one director is not sufficient for a board meeting to be held and decisions to be made, given that a sole director is unable to create a quorum by satisfying the minimum of two directors that are required for a board meeting, as set out in Article 11(2).  

In contrast, in the same year, the case of Re Active Wear Limited [2022] concluded that a sole director has valid authority to make decisions on behalf of the company. It is important to note that the judge commented that this would not have been the case where the company has in the past had more than one director.

Whilst the decision of Re Active Wear Limited [2022] was welcomed, the confusion created by contrasting interpretations of Articles 7(2) and 11(2) of the Model Articles remained.

Clarification: Re KRF Services (UK) Ltd [2024] EWHC 2978 (Ch)

In the recent case of Re KRF Services (UK) Ltd [2024], the High Court has provided further clarification on the tension between Articles 7(2) and 11(2) of the Model Articles.

After consideration of the aforementioned cases of Hashmi v Lorimer Wing [2022] and Re Active Wear Limited [2022], the judge held that where a company has adopted Model Articles, the sole director has the authority to act under Model Article 7(2). The judge commented that, insofar as the company has adopted unamended Model Articles, Article 7(2) will triumph over Article 11(2). The Court distinguished the case of Hashmi v Lorimer Wing, as that involved a modification to the minimum number of directors, and the judge concluded that the historical number of directors is irrelevant in determining whether Article 7(2) will take precedence over Article 11(2).

What does this mean for companies that have adopted the Model Articles?

Whilst the case of Re KRF Services (UK) Ltd [2024] has provided some clarification and has indicated that the courts are leaning towards allowing sole directors to act where Model Articles have been adopted, it is important to note that it is a High Court decision which does not overrule the previous judgments. It has merely provided some clarification.

As a result, companies with a sole director and who have Model Articles need to be alert to the fact that decisions made by a sole director have previously been deemed to be invalid by the Court. Therefore, it is worth considering whether it would be commercially expedient to appoint another director to ensure all future board meetings are quorate and compliant with Model Article 11(2).

In our experience advising financial institutions in debt finance transactions involving corporate borrowers the preference is amending the company’s Articles. The amendment explicitly states that a quorum can be formed with only one sole director present, and such director has all powers of decision making. It is prudent for shareholders to ratify previous decisions of the sole director as part of this process. This documentation and amendment to the Articles can give comfort to sole directors that they can operate the company as they deem fit without the risk of challenge.

Transparency in digital transactions: What your business needs to know

Posted on: February 18th, 2025 by Hugh Dineen-Lees
  • The Digital Markets, Competition and Consumers Act (DMCCA) mandates greater transparency in digital transactions, aiming to eliminate deceptive practices that harm consumers.
  • The Competition Markets Authority (CMA) has gained new power to directly enforce consumer protection laws without court intervention which includes issuing fines and taking corrective actions against businesses that violate the DMCCA.
  • Businesses must enhance their compliance efforts to adapt to the new regulations.

Key changes

  1. Subscription services

Businesses must provide clear information about subscription terms, including costs and cancellation procedures. Automatic renewals must be communicated transparently, and consumers should be able to cancel subscriptions easily. The pre-contract information must be given together, in writing, without the need to click links or download.

In addition, a 14-day cooling off period must be provided to consumers and consumers must have the ability to easily exit the contract with a single communication.

The new regime for subscription contracts will not come into force until April 2026.

  1. Fake reviews

Under the DMCCA, businesses must not publish or commission the publication of fake reviews which are designed to mislead consumers. The DMCCA also puts an obligation on businesses to take reasonable and proportionate steps to prevent the publication of fake reviews.

  1. Hidden fees

All charges must be disclosed upfront in the invitation to purchase (i.e. adverts or listings), including any fees, taxes and charges. Businesses can no longer add unexpected fees at the final stages of a transaction. If the whole price cannot be ascertained, then the method of calculation must be stated in the invitation to purchase.

How does it affect businesses?

  • Businesses will need to update their systems to comply with these updated transparency requirements, which could potentially involve significant changes to their terms of business, website and customer service.
  • Failure to take reasonable and proportionate steps to prevent the publication of fake reviews may leave businesses open to fines and penalties from the Competition and Markets Authority.
  • Marketing teams must be vigilant in creating and reviewing advertising content to ensure it meets the new standards and to ensure that all promotional materials are truthful and not deceptive.

Enforcement by the CMA

The CMA’s will be granted a new power to directly enforce consumer protection laws without court intervention, unlike the Financial Conduct Authority (‘FCA’). This includes issuing fines and taking corrective actions against businesses that violate the DMCCA. In addition, the CMA can consider both regulated and unregulated businesses, unlike the FCA.

Key changes:

  1. Direct Enforcement

The CMA can now issue infringement notices and impose fines of up to 10% of a company’s global turnover or up to £300,000 (whichever is greater) for non-compliance.

  1. Corrective Actions

The CMA can mandate corrective actions, such as refunds to consumers or changes in business practices. Fines may also be issued for failure to cooperate with CMA investigations.

How does it affect businesses?

  • Businesses must adopt a proactive approach to compliance, regularly auditing their practices to ensure they meet the new standards.
  • Businesses should develop robust risk management strategies to handle potential CMA investigations and enforcement actions.

Conclusion

The DMCCA has brought significant updates to consumer law, emphasizing transparency, fairness, and direct enforcement. Recent news and governmental consultations regarding new measures to tackle unfair and costly subscription traps suggest that the CMA will not be shy to exert their new powers. For businesses, this means adapting to new regulations, enhancing compliance efforts, and ensuring that consumer interactions are fair and transparent.

Key dates upcoming under ECCTA

Posted on: February 18th, 2025 by Hugh Dineen-Lees

As a reminder to those in charge of company administration, the Economic Crime and Corporate Transparency Act (ECCTA) became law in October 2023. It set out a phased timeline for new requirements on businesses to enhance transparency and prevent crime within UK business. In this summary we highlight the upcoming key dates to note.

We have reported on the objectives of ECCTA in our December 2024 newsletter and a specific article by Izzy Moran available on our website.  

Identity Verification from 25 March 2025

From 25 March 2025, individuals may voluntarily verify their identity directly with Companies House or via an Authorised Corporate Service Provider (ACSP). Identity verifications apply to all new and existing company directors and people with significant control. They also apply to members of LLPs.  

** Identity verification will become compulsory and so it is advisable to do this as soon as possible to avoid missing the compulsory deadline. If you need any guidance or assistance, please be in touch.

Missing the deadline is an offence. The consequences include financial penalties and may prevent you from being able to make other filings on behalf of existing companies or setting up a new company.

Suppression of Personal Information

From 27 January 2025, individuals can apply to supress personal information from historical documents such as their home address, day of birth, signatures, and business occupation.

Additional protection will be available to those at risk of harm by protecting their information from public view.

Changes to Limited Partnerships

From spring 2026, LPs must: 

  • provide partners’ names, date of birth and usual residential address
  • verify the identity of general partners
  • provide a registered office address in the UK – this must be in the same country the LP is registered in, for example a LP registered in Scotland must have a registered office address in Scotland
  • provide a standard industrial classification (SIC) code
  • file an annual confirmation statement

LPs will need to file their information through an ACSP.

There will be new powers to:

  • close and restore LPs
  • apply sanctions
  • protect partners’ information
  • operate a statutory compliance process

These changes for LPs will be implemented following secondary legislation and so we are continuing to monitor these changes.

Please see our initial report on the objectives of ECCTA on our website. We will continue to provide updates as they come into effect. Now it is time to start taking action to verify the identity of the individuals behind your organisation. If you need any guidance or assistance, please be in touch.

Financial penalties and fees: Navigating the new Companies House rules

Posted on: February 18th, 2025 by Hugh Dineen-Lees
  • The Economic Crime and Corporate Transparency Act (ECCTA) has granted Companies House enhanced powers and responsibilities, the power to impose financial penalties and increased fees, a requirement for compulsory identity verification, insistence on electronic filing and measures to enhance the transparency of company ownership.
  • These changes will be rolled out in phases, with full implementation expected by 2027 and all stakeholders should stay informed.
  1. Enhanced powers and responsibilities

In March 2024, Companies House was granted greater authority to query and challenge the information submitted by companies. This includes the power to reject or remove incorrect or fraudulent data from the register, analyse information in greater detail, and share more information with law enforcement agencies and regulatory bodies where necessary. These measures are designed to ensure that the information held is accurate and reliable, thereby increasing trust in businesses across the UK. 

  1. Financial penalties and increased fees

In May 2024, Companies House was granted the power to impose civil financial penalties for most offences under the Companies Act 2006. This significantly widens the failings companies could be penalised for and is intended to ensure prompt compliance with Companies House requirements and deter fraudulent activities.

Companies House also increased its fees to fund these new measures. For example, the cost of incorporating a company has increased from £10 to £50 when filed digitally, and the cost of filing confirmation statements has risen from £13 to £34.

  1. Identity verification

A major component of the reforms is the introduction of compulsory identity verification for all new and existing company directors and people with significant control. For existing companies, the transition period will start from Autumn 2025. By spring 2026, anyone filing on behalf of a company will also need to verify their identity.

  1. Digital filing requirements

By 2026 to 2027, Companies House will require all annual financial accounts to be submitted digitally via software. This move is part of a broader effort to modernise the filing process and improve the efficiency and accuracy of data submissions.

  1. Transparency of company ownership

The Act also mandates the publication of more detailed information on company shareholders, enhancing the transparency of company ownership. This measure is expected to be a significant undertaking for some companies, and the implementation options are currently being worked through.

Conclusion

The updates to Companies House under the ECCTA are designed to create a more transparent, accountable, and secure business environment in the UK. By introducing stricter identity verification, increasing the powers of Companies House, and enhancing the accuracy of company data, these reforms aim to reduce opportunities for economic crime and improve corporate governance.

These changes will be rolled out in phases, with full implementation expected by 2027. Companies and stakeholders are encouraged to stay informed and prepare for these upcoming requirements to ensure a smooth transition. We will continue to keep you updated on upcoming key dates.