The Economic Crime and Corporate Transparency Act (ECCTA) 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.
Under the reforms that are due to be introduced by ECCTA over the next 18-24 months, company directors and people with significant control (PSCs) will be required to verify their identities with Companies House. Individuals will be allowed to voluntarily verify their identity with Companies House directly, but professional intermediaries (such as solicitors and accountants) will also be able to register as 'Authorised Corporate Service Providers' (ACSPs) and carry out identity verification services on behalf of their clients.
In light of these forthcoming changes, Companies House has recently published two key implementation dates:
- From 25 February 2025, Companies House expects to be able to:
- Expedite the striking off of companies where it has been concluded that the company has been formed for a false basis; and
- Carry out checks on ACSPs to authorise them to carry out identity verification services (as detailed above).
- From 25 March 2025, Companies House expects to be able to allow individuals to voluntarily verify their identity.
Companies House has advised that there will be a 12 month transition period commencing in autumn 2025 to allow all existing directors and PSCs to verify their identity, and that from autumn 2025 onwards, identity verification for new directors and PSCs will become compulsory, whether on company incorporation or at the time of appointment.
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.
