ECCTA 2023: Identity Checks arrive this autumn - what you need to do now

The Economic Crime and Corporate Transparency Act 2023 (“ECCTA”) received Royal Assent in October 2023. The ECCTA gives Companies House a much stronger, more proactive role in tackling fraud and improving the accuracy of the public register. For owner managers and SMEs, the next phase brings mandatory identity verification and tighter filing controls. Here’s what’s changed, what’s coming, and how to get ready.

What has already changed

• Stronger Companies House powers: Wider investigatory and enforcement powers to improve the integrity of the register and deter abuse.
• Stricter company names: Broader grounds to reject names that mislead or could facilitate fraud.
• Lawful purpose statements: On incorporation, share subscribers must confirm the company is formed for a lawful purpose. Directors must make ongoing annual statements that activities remain lawful.
• Real registered offices and monitored email: All companies must have a registered office where mail can reliably reach the company and provide a valid, monitored email address. New companies do this at incorporation; existing companies have had to provide these details in confirmation statements filed after 4 March 2024.
• Authorised Corporate Service Providers (“ACSPs”): Professional firms subject to anti-money laundering rules (e.g. law and accountancy firms) can register as ACSPs to file at Companies House on clients’ behalf and carry out identity verification.

Changes from 18 November 2025: Mandatory identity verification goes live

• New incorporations: All individuals involved in forming a new company must be verified.
• New appointees: All newly appointed directors and People with Significant Control (“PSCs”) must be verified.
• Existing directors and PSCs: A 12 month transition begins on 18 November 2025. Over seven million existing directors and PSCs must verify their identity during this period.  Verification will be required as part of the annual confirmation statement.

How verification will work

• Options: Verifications can be carried out via the Companies House online portal, at a Post Office, or via an ACSP.
• Timing: For new appointments and incorporations, verification will need to be completed promptly; for existing roles, complete during the 12 month window and before filing the relevant confirmation statement.

What does this mean for your business?

Even if you’re not incorporating a new company, these rules affect you.

• Expect verification requests: Watch for Companies House prompts regarding your directors and PSCs.
• Plan your route: Decide whether to verify via the Companies House portal, at a Post Office, or through an ACSP.
• Align with your confirmation statement: Build verification into your annual timetable so it’s completed before you file.
• Keep records ready: Ensure directors and PSCs have acceptable ID and that your registered office and email address on the register are up to date and monitored.

Penalties for non‑compliance

Failure to comply can lead to significant consequences, including:

• Unlimited fines for offences; and
• Criminal liability, with potential large fines or imprisonment, for failure to verify identity as required.

What’s next in Spring 2026: Further ECCTA measures are scheduled

• Verified presenters: Anyone filing documents at Companies House on a company’s behalf must have their identity verified, similar to directors and PSCs.
• ACSP only filing by third parties: Third party agents filing for companies must be registered as an ACSP.
• Tighter control over disqualified directors: Companies House will gain powers to reject documents delivered by disqualified directors, unless filed by an ACSP for permitted filings.

If you’d like support preparing for the 18 November 2025 changes or setting up a smooth verification process, get in touch with our Corporate Team on 0113 207 0000.