Final elements of the Companies Act 2006 will help business save valuable time and money.

2.5 million British companies look set to benefit from a range of new measures introduced this week, which will simplify and strengthen the way they do business.

In what is the biggest overhaul of company law, the final elements of the Companies Act 2006 was finalised yesterday (1 October), which the Department for Business, Innovation and Skills, says will make it easier to start up and run companies.

Key provisions of the Companies Act 2006 include:

• Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
• Enabling greater use of electronic communications with shareholders therefore avoiding unnecessary cost and time consuming administration
• Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public.

Business Minister, Ian Lucas, said: “We are working hard to create the best environment for businesses to thrive and it is paying off, with the UK recognised by the World Bank as the best place in Europe to do business.

“Common Commencement Dates help companies to plan ahead, saving them time and money. The changes under the Companies Act will help 2.5 million British companies and deliver benefits to business of around £300 million a year.”

Yesterday was also a significant day for workers across the hospitality industry and those in low-paid jobs.

The national minimum wage increased by 7p to £5.80 per hour for workers aged 22 and over; while the rate for 18 to 21-year-olds increased to £4.83, and for 16 to 17-year-olds the minimum wage increased to £3.57 per hour.

New tipping laws also came into place which make it illegal for restaurants and bar to use tips to make up wages.