How the ECCTA Will Affect UK Businesses
Upcoming Changes to the Economic Crime and Corporate Transparency Act (ECCTA): What UK Businesses Need to Know
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) became law in the UK on 26 October 2023. This significant piece of legislation forms part of the government’s wider efforts to combat corporate and economic crime. It introduces a series of new requirements around corporate transparency, new powers for enforcement bodies such as Companies House, and provisions aimed at holding companies accountable for economic wrongdoing.
The implementation of the Act is being rolled out in phases, with changes starting from March 2025. These reforms will affect around 7.4 million company officers – including directors, secretaries, and persons with significant control (PSCs) – who will be required to verify their identities.
In this blog, we outline what these changes mean for UK businesses, how and when they will take effect, and what steps companies should take to prepare.
Identity Verification: A Key New Requirement
From autumn 2025, all directors, PSCs and relevant officers of UK-incorporated entities – such as companies and limited liability partnerships – must complete identity verification with Companies House.
There are two main ways to verify identity:
Directly through GOV.UK One Login or in-person at the Post Office (free of charge)
Indirectly through an Authorised Corporate Service Provider (ACSP), which may involve a fee
Most UK-based individuals will be able to verify their identity directly. However, overseas directors and PSCs may need to use an ACSP to meet their obligations.
What is an ACSP?
Authorised Corporate Service Providers are individuals or businesses already supervised under the UK's anti-money laundering (AML) regulations. These include solicitors, accountants and company formation agents who are authorised and registered with Companies House to conduct filings and identity checks.
For businesses with more complex structures, cross-border operations or frequent filings, using an ACSP can be a practical and efficient solution for meeting the new verification requirements.
What Happens If You Don’t Comply?
Failure to verify identity when required could lead to serious consequences:
Civil penalties issued by the Registrar
Criminal prosecution
Rejection of statutory filings
Inability to incorporate new companies
Once the transition period has ended, Companies House will begin actively pursuing enforcement against individuals and entities that fail to comply.
Key Dates and Implementation Timeline
Here’s a summary of when the various ECCTA changes will take effect:
18 March 2025
Third-party agents (e.g. solicitors, accountants, company formation agents) must be registered with Companies House as ACSPs to carry out company registrations, submit filings, or conduct identity checks on clients’ behalf.
Note: This was initially scheduled for 25 February 2025 but has been delayed.
8 April 2025
Voluntary identity verification begins. Directors, PSCs and those filing documents at Companies House can start verifying their identity.
31 August 2025
Trust information on the Register of Overseas Entities becomes available upon request. This will include details about beneficiaries and settlors.
By Autumn 2025
Identity verification becomes compulsory for new directors and PSCs at the time of appointment.
A 12-month transition period for existing individuals begins, based on each company’s confirmation statement date.
September 2025
The new offence of failure to prevent fraud comes into force.
This applies to large organisations and holds them criminally liable if someone associated with them commits fraud for their benefit – unless they can demonstrate reasonable fraud prevention measures were in place.
While SMEs are currently outside the scope of this offence, larger companies should begin reviewing internal policies and controls now.
By Spring 2026
Identity verification will be required for all individuals submitting documents to Companies House.
Only registered ACSPs will be permitted to file on behalf of others.
Disqualified directors will be barred from making submissions except via an authorised ACSP.
By End of 2026
All limited partnerships will be required to provide enhanced information to Companies House.
Identity verification will be mandatory for all individuals on the register, with enforcement action commencing for non-compliance.
What Should Businesses Do Now?
There is still time to prepare for these changes, but acting early will help ensure a smooth transition. We recommend the following:
Prepare for the identity verification process, especially for directors and PSCs
Speak with your legal adviser or corporate service provider to assess whether you’ll need to use an ACSP
Ensure all statutory filings and Companies House records are up to date
Begin reviewing internal policies and governance procedures to align with new obligations
Voluntary identity verification is already open and can be completed online. Businesses looking to stay ahead of regulatory requirements should take advantage of this option.
Supporting Businesses Through Change
The ECCTA forms part of a wider effort to improve the integrity of the UK’s corporate register and reduce the misuse of opaque company structures. While the reforms will introduce more checks and administrative requirements, they also aim to strengthen trust, transparency and investor confidence in UK businesses.
At Zyla Accountants, we are here to help you stay compliant, informed and prepared. Whether you need assistance navigating identity verification, working with an ACSP, or reviewing your company’s governance framework, our team is ready to support you.
Need support?
Contact us today to discuss how the ECCTA changes may affect your business and how we can help you prepare.