UK Company Law Reforms in Effect: Key Changes Every Cross-Border Seller Must Know

The UK’s Companies House has recently introduced a series of legal and compliance reforms under the Economic Crime and Corporate Transparency Act (ECCT Act), which have direct implications for all companies registered in the UK—including those owned by cross-border e-commerce sellers. These regulatory changes aim to enhance business transparency, improve corporate accountability, and reduce financial crime. Non-compliance could lead to significant penalties or operational disruptions.

Here’s a concise breakdown of the most important changes and what overseas sellers need to do to stay compliant.

1. Registered Office Address and Email Requirements

Effective from 4 March 2024, companies must maintain an “appropriate registered office address”—an address that meets the following two criteria:

Official communications from Companies House must be capable of being received and acknowledged by someone acting on behalf of the company.

The address must have a system for confirming the delivery of documents (e.g. via tracked post or signature on receipt).

Using a virtual or non-monitored address may now be deemed non-compliant.

In addition, every UK company must register a valid email address to receive official notices from Companies House:

The email address is not publicly disclosed.

It is a mandatory communication channel under company law.

Failure to maintain or update it is a breach of compliance.

Practical Tip: Ensure your registered office can receive and sign for letters, especially HMRC’s tax-related correspondence. If using a corporate secretary service, confirm they provide document handling. Register and update your email address with Companies House promptly.

2. New Penalty Mechanism from October 2024

Companies House will begin issuing financial penalty notices for non-compliance with statutory obligations. Offenses may include:

Failure to file the Confirmation Statement on time

Submitting inaccurate, incomplete, or misleading information

Failure to complete identity verification (when applicable)

Failure to maintain a compliant registered address or email

Penalty Process:

Warning Notice – Companies will first receive a notice outlining the potential breach and intended penalty amount.

Response Period – A grace period (typically 28 days) allows companies to rectify the issue before a fine is imposed.

Formal Penalty Notice – If unresolved, a fine will be formally issued with a payment deadline.

Practical Tip: This mechanism complements the new address and email reforms. With an up-to-date email and working address, companies can avoid penalties caused by missed communications.

3. Mandatory Identity Verification (Effective from Autumn 2025)

Identity verification will become a legal requirement for individuals associated with UK companies, including:

Directors

Persons with Significant Control (PSCs)

Company Secretaries

Anyone filing documents on behalf of the company

Verification Methods:

Online Verification – Via GOV.UK One Login or official app (foreign passport chip reading accepted).

In-Person (UK Post Office) – Verification through designated counters.

ACSP Verification – Through an authorised Corporate Service Provider (subject to strict compliance protocols).

Practical Tip: Although this rule is scheduled to take effect in late 2025, overseas sellers should start preparing for verification procedures now—especially those with non-resident directors or offshore shareholders.

Final Thoughts: What Cross-Border Sellers Must Do

Historically, UK company registration has been simple and accessible, which led to a rise in companies with inaccurate or incomplete registration details. The new legislation strengthens enforcement and aims to eliminate shell companies and abusive practices.

If your UK company currently uses a non-responsive address, lacks a verified email, or has unverified directors, it is essential to take action now.

Compliance is no longer optional—it’s the foundation of sustainable international operations. Failing to meet these obligations could result in:

Fines

Legal status revocation

Investigation under economic crime frameworks

For e-commerce sellers aiming to scale globally through the UK, staying informed and proactively compliant is your best long-term strategy. If you're unsure whether your current company setup is compliant, consult a qualified advisor to perform a compliance health check.