An update on the Economic Crime and Corporate Transparency Act

One of the key provisions brought in by the ECCTA is the implementation of a more rigorous verification processes for the information submitted to Companies House, this will include verifying the identity of directors and PSCs to prevent fraudulent activities.  From 25 March 2025, Companies House should be able to carry out checks on Authorised Corporate Service Providers (ACSPs) to authorise them to carry out verification services in readiness for the compulsory identity verification which should form part of incorporation and new appointments for new directors and PSCs from Autmn 2025. 

Once ECCTA is fully in force, a person will only be able to file on behalf of a company, if that person is an officer or employee of that company, or they are (or an employee of) an ACSP. In accordance with Companies House’s new objectives and powers, there will also be increased enforcement, supervision and regulation of ACSPs.

After the identity verification system is implemented, Companies House should be able to begin the 12-month transition phase which will require more than 7 million existing directors and PSCs to verify their identity, this will happen as part of the annual confirmation statement filing.

Looking further into 2026, Companies House aim to have completed the transition period for all individuals on the register requiring identity verification and will commence compliance activity against those who have failed to verify their identity and will facilitate greater cross-checking of information and data between Companies House and other public and private sector bodies.

In addition to the above changes, from the 27 January 2025, Companies House should be able to receive (and assess the implications of) applications from individuals seeking to have their residential addresses suppressed from public view, where a residential address has been used as registered office address and from 25 February 2025, Companies House should be able to expedite the striking off a company where the registrar has concluded that such company has been formed for a false basis. 

In light of these updates, it is important for companies to stay informed and compliant with the new requirements.  Directors and PSCs should consider taking proactive steps to ensure their records are accurate and up-to-date, and to familiarise themselves with the new verification processes. The Corporate team here at Forbes are on hand to assist you in navigating these changes and to provide any necessary support to ensure compliance.