The Economic Crime and Corporate Transparency Act 2023 (“ECCTA”) gives Companies House new powers to ensure that the information it holds is accurate and not being used to support criminal activity. The Act introduces a range of reforms, with a focus on three key areas:
Key changes introduced by ECCTA
1. Identity Verification
Directors and persons with significant control (PSCs – those holding more than 25% of the shares or voting rights in a company) must verify their identity with Companies House or through an Authorised Corporate Service Provider (ACSP), such as a solicitor or accountant.
2. Information Sharing
The Act encourages greater collaboration between regulated firms, allowing them to share client data more easily where there is a suspicion of economic crime.
3. New Criminal Offences
A new corporate offence of “failure to prevent fraud” will apply to large businesses, not-for-profits, and public bodies. These organisations will be required to put in place measures to prevent fraud being committed by employees or others connected to the business.
Timeline of reforms
While many of the details and timings are still being confirmed, the following key milestones have been announced:
From 25 February 2025
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Companies House can now speed up the process of striking off companies formed on a false basis.
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Checks can now be carried out on ACSPs authorised to verify identities.
From 8 April 2025
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Individuals can voluntarily verify their identity either directly with Companies House or through an ACSP.
By Summer 2025
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Individuals will be able to apply to suppress their residential address from public view in certain cases.
By Autumn 2025
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Identity verification will become mandatory for all new directors and PSCs when appointed.
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A 12-month transition period will begin for existing directors and PSCs to complete their verification.
From 1 September 2025
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The new offence of “failure to prevent fraud” takes effect.
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Large companies should assess whether they have appropriate anti-fraud procedures in place.
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A business can be held criminally liable even if management was unaware of the fraud – unless reasonable preventative measures were in place.
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By Spring 2026
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Identity verification will be required for anyone filing documents at Companies House.
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Third-party agents filing on behalf of companies must be registered as ACSPs.
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Companies House will be able to reject documents filed by disqualified directors unless submitted through an ACSP.
By End of 2026
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All limited partnerships will be required to submit more detailed information for improved transparency.
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Companies House will begin enforcement action against directors, PSCs, and RLEs who have failed to verify their identity.
Identity verification – what you need to know
How to Verify Your Identity
From 8 April 2025, individuals can verify their identity:
1. Directly with Companies House
Using the GOV.UK One Login system, individuals can complete the process:
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Through the GOV.UK ID Check app,
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By answering security questions online, or
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In person at a Post Office.
Each method requires photo ID and answering a series of security questions.
2. Through an ACSP
Alternatively, an authorised intermediary (such as a solicitor or accountant) can verify the individual’s identity and confirm the information to Companies House.
What is an ACSP?
An Authorised Corporate Service Provider is:
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Registered with a supervisory body for anti-money laundering (AML) purposes; and
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Authorised to file documents on behalf of clients whose identities have been verified.
ACSPs must keep records of every identity verification they carry out and may be suspended or removed from the register if they fail to meet their obligations.
Who must verify their identity?
From autumn 2025, identity verification will be mandatory for:
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New directors, PSCs and registrable legal entities (RLEs);
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Existing directors, PSCs and RLEs (within the 12-month transition period).
failure to comply may result in:
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A fine and criminal offence for acting without verified ID;
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Directors being prohibited from acting;
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The company and its officers committing an offence if they allow unverified individuals to act as directors.
Note: The director’s appointment will still be legally valid, even if they have not verified their identity – but they must not act in the role until verification is complete.
Looking ahead
By spring 2026, Companies House also intends to require identity verification for anyone making filings on behalf of a company.
This summary is based on guidance available as of April 2025. We are monitoring updates from Companies House and will provide further guidance when more information becomes available.
If you have any questions or concerns about how these changes may affect your business, please don’t hesitate to contact us.
