The Economic Crime and Corporate Transparency Act 2023 introduces significant reforms to UK company law, notably the implementation of identity verification requirements for individuals involved with UK companies. These measures aim to enhance transparency, deter fraudulent activities, and bolster trust in the corporate sector.
Transition Period and Compulsory Nature
Starting 8 April 2025, individuals can voluntarily verify their identity with Companies House. By autumn 2025, this verification becomes mandatory for new directors and Persons with Significant Control (PSCs) upon incorporation or appointment. Existing directors and PSCs will have a 12-month transition period, commencing in autumn 2025, to comply with these requirements, making verification compulsory for them by autumn 2026.
Identification Requirements
To verify identity directly with Companies House via GOV.UK One Login, individuals will need one of the following forms of photo identification:
- Biometric passport from any country
- UK photo driving licence (full or provisional)
- UK biometric residence permit (BRP)
- UK biometric residence card (BRC)
- UK Frontier Worker permit (FWP)
Alternatively, verification can be conducted through an Authorised Corporate Service Provider (ACSP).
Role of Authorised Corporate Service Providers (ACSPs)
ACSPs are entities such as accountants, solicitors, and company formation agents that are supervised under anti-money laundering regulations. From 18 March 2025, these firms can apply to become ACSPs. Once registered, ACSPs can verify the identities of their clients and file information on their behalf. The verification process conducted by ACSPs must meet the same standards as those conducted directly with Companies House.
Applicability to Company Filings
The identity verification requirements apply to individuals who set up, run, own, or control a company in the UK, including directors and PSCs. While the verification is primarily associated with roles and appointments, it extends to those filing documents on behalf of a company. Therefore, individuals responsible for submitting filings, such as company secretaries, will also need to verify their identity. However, once an individual has been verified, they are not required to verify their identity each time they file a document.
Individuals Required to Verify Identity
The following individuals are required to verify their identity:
- Directors (including equivalents such as LLP members)
- Persons with Significant Control (PSCs)
- Individuals filing documents on behalf of a company (e.g., company secretaries)
Shareholders who are not PSCs are not required to undergo identity verification under the current regulations.
These reforms represent a significant shift in UK company law, aiming to enhance the integrity of the corporate register and combat economic crime. Companies and individuals involved should prepare to comply with these new requirements within the specified timelines.
We will be applying to become an ACSP as soon as we are licenced by CIMA for this activity, the licences will be available later this year.
steve@bicknells.net
Sources:
Timeline for Companies House ID changes | ICAEW
Verifying your identity for Companies House – GOV.UK
