A seismic change is coming to UK company law.
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is not just another regulatory tweak — it’s a game-changer that will fundamentally reshape how businesses operate in the United Kingdom.
From 18 November 2025, a new regime of mandatory identity verification (IDV) kicks in, affecting over 5 million people: all company directors, persons with significant control (PSCs), and members of LLPs. If you’re in one of those roles, the law now requires you to prove who you are before you can act in that capacity, file documents, or be recognized by Companies House as a director or PSC.
Who Needs to Verify Their Identity Under ECCTA
Here’s a summary of the scope and scale of this legislative overhaul:
Directors of UK registered companies — both new appointments and existing officeholders. Persons with Significant Control (PSCs) — including those defined as “relevant legal entities” (RLEs), which must nominate an individual officer for verification. Members of Limited Liability Partnerships (LLPs) — all designated and regular members must comply.
This initiative is part of the UK government’s broader strategy to combat money laundering, fraud, and other economic crimes. By requiring identity verification for key individuals in companies, authorities aim to increase corporate transparency and make it harder for bad actors to use shell companies and nominee directors.
Three Ways to Comply with the New Requirements
The legislation provides three main pathways for completing identity verification:
- Directly through Companies House — using their digital platform with document checks and biometric verification.
- Through an Authorized Corporate Service Provider (ACSP) — a certified provider who can conduct verification on your behalf.
- Through a solicitor or accountant — if you already work with a professional who has the appropriate accreditation.
For more detailed information about the verification process and practical implementation aspects, check out The Edinburgh Reporter’s comprehensive coverage of the major company law changes https://theedinburghreporter.co.uk/2025/09/big-shake-up-in-company-law-eccta-identity-verification-i-5m-people-affected/.
Practical Challenges and Fee Transparency Issues
Despite the noble intentions behind the legislation, ECCTA implementation hasn’t been without problems. Many business owners are already facing practical difficulties: confusion about the process, lengthy processing times, and murkiness surrounding fee disclosures among ACSP providers.
The issue of pricing transparency is particularly problematic. Some providers don’t publish their fees upfront, creating additional barriers for small and medium-sized businesses trying to budget for compliance costs. This lack of clarity makes it difficult for directors and PSCs to make informed decisions about which verification route to choose.
What Happens If You Don’t Comply?
The consequences of non-compliance are serious. Directors and PSCs who fail to verify their identity by the deadline may find themselves unable to file documents, make changes to company records, or even continue in their roles. Companies House has indicated that unverified individuals could be removed from the register, which could have significant implications for business operations.
The Bottom Line
ECCTA represents the most significant reform of UK company law in recent decades. While adapting to the new requirements may prove challenging in the short term, the long-term goal — creating a more transparent and trustworthy business environment — is worth the effort.
Directors, PSCs, and LLP members should begin the verification process as soon as possible to avoid complications after 18 November 2025. With millions of people needing to verify their identities, processing times are likely to increase as the deadline approaches. Don’t leave it to the last minute — start planning your compliance strategy now.
