The Government has pledged to make "sweeping changes" to company law to make it easier for smaller firms in particular to do business.

Trade and Industry Secretary Alistair Darling published a reform Bill which he estimated would save companies £250 million, including £100 million a year for small companies.

The changes will make it easier to establish small firms and will deregulate the way they are run.

One of the measures will allow directors of animal research companies to use a service address rather than a home address on documents, in a bid to protect them from attacks by animal rights extremists.

Mr Darling said: "We owe it to people to protect them from a tiny minority of extremists."

The minister said a thorough overhaul of company law was needed to make it more suited to the needs of British industry.

"The measures set out in the Bill will achieve that. They will help to ensure our company regulation and financial markets continue to be regarded as among the worlds best."

Other measures include removing the need for private companies to hold annual meetings as well as abolishing the requirement for a small businesses to have a company secretary.