The Companies Act will come into force from October next year which will simplify and de-regulate company law to benefit firms, especially small businesses.

Competitiveness minister Stephen Timms has set out the final timetable for the implementation of the Companies Act, after being lobbied by businesses and hearing advice from the Registrar of Companies. He said the measures to come into force next October will include the new procedure for private companies to make capital reductions supported by a solvency statement instead of by a court order. The measure could save large and small businesses time and money.

The confirmation follows the announcement in November that the final implementation date for the Companies Act will now be 1 October 2009, rather than 1 October 2008. The government said at that time that it would seek the views of business on whether some provisions of the Act could still come into force in October next year, rather than awaiting the final implementation date of October 2009.

Timms said: "The Companies Act introduces sweeping changes to simplify and improve company law. Company law has been substantially rewritten to make it easier to understand and more flexible - especially for small businesses."