Business Law Specialist Frank Scott-Ashe explains that Economic Crime and Corporate Transparency Act ID verification is now mandatory, reshaping Companies House compliance for directors, PSCs and LLP members.Contact Frank on 01225 462871 or complete the Contact Form below. |
When we published our earlier article on the Economic Crime and Corporate Transparency Bill in June 2023, the legislation was still making its way through Parliament, and many of its most significant reforms had yet to take effect. Now, the landscape has changed materially.
With the Economic Crime and Corporate Transparency Act 2023 (Commencement No 6 and Transition Provisions) Regulations 2025 now in force, some of the most far-reaching measures in the Act are now ‘live’. These changes are designed to tackle economic crime, improve the accuracy of the public register and fundamentally change how Companies House operates. For company directors, LLP members and people with significant control (PSCs), the message is simple – identity verification is no longer optional.
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A more active Companies House
Historically, Companies House has operated largely as a passive registry, accepting information at face value. The Act marks a decisive shift away from that approach. Companies House is now an active gatekeeper, with enhanced powers to query, reject and remove information that appears inaccurate or suspicious.
At the heart of these reforms is mandatory identity verification. From 18 November 2025, anyone seeking to act as a company director, LLP member or PSC must have their identity verified before they can be appointed and registered. This applies to UK and overseas individuals alike and is intended to prevent the misuse of corporate structures for fraud, money laundering and other forms of economic crime.
What this means for new and existing office holders
For new appointments made on or after 18 November 2025, identity verification is a precondition to registration. In practical terms, this means that an individual who has not completed the verification process cannot have their appointment registered at Companies House.
Those who already hold positions as directors, LLP members or PSCs are not caught out overnight, but they should not be complacent. Existing office holders have a transitional period of 12 months from 18 November 2025 to complete identity verification. Once that window closes, failure to verify may result in penalties and could ultimately affect a company’s ability to make filings or remain compliant.
The verification process itself can be completed directly through Companies House or via an authorised corporate service provider, such as a law firm. While designed to be straightforward, it is still an additional compliance step that businesses will need to manage carefully.
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The end of statutory registers at the registered office?
Another quiet but important change introduced by the Act is the removal of the requirement for companies to keep certain statutory registers at their registered office or single alternative inspection location (SAIL). Registers of directors, company secretaries and PSCs no longer need to be maintained internally.
That does not mean the information disappears. On the contrary, it reinforces the central role of Companies House as the single, authoritative source of corporate information. Companies must still ensure that all relevant details are accurately and promptly filed at Companies House, as this is now the definitive public record.
Companies must now however keep a register of members at their registered office (or SAIL) and the option of keeping this information on the public register at Companies House instead is no longer available since 26 January 2026.
Why this matters now
These reforms are not just technical housekeeping. They reflect a broader policy drive towards transparency, accountability and trust in UK corporate structures. For well-run businesses, the changes should be manageable, but they do require planning, particularly for groups with multiple directors or complex ownership arrangements.
If you would like a refresher on the background to these reforms, our earlier article on the Economic Crime and Corporate Transparency Bill remains a helpful starting point. What has changed since then is that the law is no longer theoretical. It is here, it is live, and it is already reshaping how companies interact with Companies House.