The Economic Crime and Corporate Transparency Act 2023 (the “Act”) is introducing major reforms to Companies House to improve corporate transparency, reduce fraud, and strengthen the integrity of company information.
The reforms will be implemented in phases through 2025–2027 with key updates including:
1. IDENTITY VERIFICATION
Change: Voluntary online Verification of Individuals’ Identity
Individuals can voluntarily verify their identity through the government portal using ID documents, such as a passport have their identity verified through an Authorised Corporate Service Provider (“ACSP”).
Effective Date: From 8 April 2025
Proposed actions:
- Directors and PSCs should consider completing voluntary ID verification before it becomes mandatory.
- Companies should identify a trusted ACSP if they plan to use one for compliance.
Change: Mandatory verification for directors and Persons with Significant Control (“PSCs”).
There will be a compulsory identity verification of new and existing directors and PSCs must verify their identity. Specifically, new appointees must verify their identity before appointment and existing directors/PSC will have a 12 month transition to comply.
Effective Date: From November 2025, subject to secondary legislation.
Proposed actions:
- Begin identifying and verifying existing directors and PSCs early.
- Review internal procedures to ensure ID verification is conducted prior to new appointments after the effective date.
Change: Compulsory Identity Verification for Presenters
Anyone who files documents at Companies House (“Presenters”) will be required to verify their identity and third-party agents filing on behalf of a company with Companies House will be required to be registered as an ACSP. Identity verification will also be required for general partners of limited partnerships.
Expected: From Spring 2026
Proposed actions:
- Intermediaries and agents should prepare to register as ACSPs.
- Companies should only use agents who are (or will be) authorised.
- Review who files for the company and ensure processes are in place for compliance.
2. ABOLITION OF CERTAIN COMPANY REGISTERS
Change: there will no longer be a requirement for companies to hold Registers of Directors, Secretaries and PSCs. This information must instead be filed and kept up to date at Companies House. However, companies will still be legally required to keep a Register of Shareholders (Members).
Effective Date: From 18 November 2025
Proposed actions:
- Ensure internal controls are updated to reflect this shift.
- Continue maintaining the shareholder register in line with legal requirements.
3. AUTHORISED SERVICE PROVIDERS
Change: ACPS can handle identity checks and filings on behalf of companies.
Proposed actions:
- Agents should assess eligibility and apply to become ACSPs.
- Companies using external providers must ensure they are registered ACSPs.
4. ACCOUNTS AND FILINGS REFORM
Change: All companies must:
- File accounts using approved third-party software (web-based or paper filings will no longer be accepted).
- File Profit and Loss accounts (even small companies).
- No longer file abridged accounts.
Effective Date: From 1 April 2027
Proposed Actions:
- Consult an accountant or software provider about approved filing solutions.
- Review whether your current financial disclosures will meet the new requirements.