In March of 2024, Companies House announced significant changes to the ECCTA. One of the main changes, is the new necessity for identity verification. This includes, directors, person's with significant control (PSC) and those who file accounts on behalf of companies. This is as a result of UK's efforts to try and tackle financial fraud and improve business transparency.
This article will describe the main changes of the Economic Crime and Corporate Transparency Act ( ECCTA 2023) and ensure you stay complaint to prevent any delays or fines when going through the process of the identification verification procedure.
What are they key modification to Companies House Rules?:
1) One of the key differences in the updated ECCTA is the requirement for all PSC's, directors and LLP members to verify their identity with Companies House. This ruling was introduced from the 8th of April 2025. Whilst initially it is voluntary to become verified, it will become mandatory later this year.
The reason for this change is:
- Put a stop to fraudulent activity
- Improve Companies House's data reliability
- Ensure that only credible individuals are appointed as director and persons of significant control within UK companies.
According to Companies House, “All new and existing directors of UK companies and members of LLPs will need to verify their identity.”
Who will need to verify their identity?:
- Directors
- People with Significant Control (PSCs)
- Company secretaries
- Anyone filing on behalf of a company (e.g. agents or accountants)
2) Stricter Requirements for Registered Addresses:
- As of March 2024, PO boxes are no longer accepted as a registered address for a company. All company addresses must be considered an 'appropriate address' in which confidential documents and paperwork can be delivered.
This prevents any abuse of mail-forwarding addresses and guarantees that all companies are reachable.
3) New Statement of Lawful Purpose Statement:
It is now crucial for all new companies to verify that their business is being incorporated for a legitimate purpose upon incorporation. The reason for this, is to prevent any criminals from exploiting UK businesses as a way to carry out money laundering, tax evasion or fraud.
When companies submit their confirmation statement (CS01) to Companies House, all businesses must now also reaffirm their legal purpose. This began from March of 2024.
4) Increased Authority for Companies House:
Companies House will now have more authority to:
•Question any suspected inaccurate data submitted to them
•Reject any filings that they believe are inaccurate or deceptive
•Remove any data that appears to be false or inaccurate
This ensures that Companies House remains reputable and allows them to take any action against activity that they believe are fraudulent more quickly.
How to get complete your identity verification:
There are two main methods for necessary people to get verified:
Option 1: Via Companies House (Direct Verification)
If you are one of the members who must complete identity verification, you can do so through the Companies House portal.
To do this, you will need:
- A form of identification (e.g. valid UK passport or UK driving licence)
- A device with a camera (for facial recognition)
The process can be done very quickly. You will be asked to:
- You will need to begin by, signing in or creating a GOV.UK One Login account (which replaces older Companies House logins).
- Scan your form of identification
- Take a picture
- The portal will then assess if both the picture and ID match
- Once this is complete, Companies House will verify identity and it will be associated with your role
Option 2: Verify through an Authorised Agent
An accountant or agent can perform identity verification on your behalf.
This processes involves the agent or accountant adhering to strict anti-money laundering regulations and must be registered with Companies House as an ACSP (Authorised Corporate Service Provider).
Once verification has been approved:
- Companies House has now received confirmation approval from the agency that they have verified your identity
- Unless told otherwise from Companies House, you will not need to do any additional identity verification
According to Companies House Guidance 2025, “An authorised agent must be registered with a supervisory body and have an account with Companies House to file on behalf of clients.”
When must you verify:
Your identity verification timeline will be dependent on your role within the company.
- It is crucial that before being appointed, PSCs must be verified
- Current directors or PSCs must authenticate themselves before the timeline set by Companies House (expected to be Autumn of 2025)
- Anyone representing a business, must be authenticated before submitting any fillings to Companies House
- Failure to do so, can lead to possible consequences such as; penalties, rejection of appointment and inability to file any necessary paperwork.
Maintaining Compliance:
In order to stay up to date with the new ECCTA modifications:
- Assess the structure within your company and decide who needs to get verified
- Begin the process ahead of time e.g. create an account with Companies House; Ensure your companies registered address is considered appropriate under Companies House new rulings and only use verified agents when outsourcing submissions.
- Complete identity verification as soon as possible to prevent any delays.
Penalties for Failure to Comply:
As a result of the update to the ECCTA 2023, Companies House now has more authority to enforce any penalties. These include:
- Penalties for not adhering to new address and/or ID verification requirements
- Charging companies for filing any false reports
- Terminating businesses for persistent non-compliance
It is evident that the UK's views on company transparency has shifted dramatically as shown by the new updates to the ECCTA 2023. By following the steps provided above, you can ensure that yourself and your company adhere with the new rulings, especially the identity verification process. By doing so, you can help build a more dependable and secure business environment in the UK along with preventing fines and delays for yourself and your company.
Useful links to get started:
• Verify your identity with Companies House using this link: https://www.gov.uk/guidance/verify-your-identity-for-companies-house
