The 1,300-section Act - estimated by The Guardian to be the biggest on the statute books - covers how firms are created, managed and wound-up. The key sections include new responsibilities for directors.

The Government reckons the Act will help small businesses save up to £100 million a year.

Secretary of State for Trade and Industry, Alistair Darling, said:

"We will work with the business community to ensure the widespread and effective communication of the Act's provisions so that all parties fully understand the measures and are in a position to take advantage of the benefits."