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Economic Crime and Corporate Transparency Act 2023
The Economic Crime and Corporate Transparency Act 2023 was enacted to combat economic crime and enhance the transparency of UK Company ownership – all with a view to supporting economic growth and making the UK an attractive place to do business.
The Act has introduced mandatory identity verification requirements for individuals who are directors of UK Companies, members of UK LLPs, and People with Significant Control (PSCs) of UK Companies and LLPs.
Individuals can verify their identity directly with Companies House or via an Authorised Corporate Service Provider.
How Teacher Stern Can Help
As an Authorised Corporate Service Provider (ACSP), we can carry out identity verification checks on behalf of Company directors, LLP members, and PSCs, ensuring compliance is smooth, secure, and stress-free. Whether you are appointing new directors or updating existing officer and PSC records, we can handle the verification efficiently, saving you time and reducing risk.
We can also advise on the broader implications of the Economic Crime and Corporate Transparency Act for you and your business.
Key Changes for Company Directors, PSCs, and LLP Members from 18 November 2025
From 18 November 2025:
- New directors must verify their identity before they can be appointed as a director of an existing Company or on incorporation of a new Company.
- New LLP members must verify their identity before they become a member of an existing LLP or on incorporation of a new LLP.
- New PSCs must verify their identity within 14 days of being named as a PSC, whether as a PSC of an existing Company or LLP, or on incorporation of a new Company or LLP.
- Existing directors and LLP members will need to verify their identity within a 12-month transition period and in advance of filing the Company or the LLP's next confirmation statement.
- Existing PSCs must also verify their identity within the
12-month transition period, but the timeframe to verify their
identity depends on whether they are both a director and PSC of the
same Company:
- Individual PSCs who are a director of the same Company will need to confirm their identity in their capacity as a PSC within 14 days of filing the Company's next confirmation statement.
- Individuals who are a PSC only must verify their identity within the first 14 days of their birth month (after 18 November 2025). For example, if a PSC's date of birth is 28 January, their 14 day period will begin on 1 January.
- Individuals will be provided with a unique Companies House personal code once their identity has been verified.
Failure to Verify
Directors, LLP members, and PSCs who fail to verify their identity may be committing an offence and will be unable to submit filings to Companies House on behalf of the Company or LLP. The Company (or relevant entity) and all its directors may also be committing an offence.
How to prepare for these changes
We recommend that the following steps are taken as soon as possible:
- Identify all existing directors, LLP members, and PSCs who will need to verify their identity.
- Calculate identity verification deadlines and inform the relevant individuals.
- Consider whether new and/or existing directors, LLP members, and PSCs should voluntarily verify their identity in advance of their identity verification deadlines.
Next Steps
If you are a director, LLP member, or PSC, now is the time to prepare. Our team can help you understand your responsibilities and complete your identity verification promptly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
