A Guide to Companies House Post - ECCTA 2023

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is a recent piece of legislation that has significant practical implications for companies, their directors and persons of significant control (“PSCs”). The Act is being implemented in phases, and so it is crucial for companies to stay afloat of key developments as they happen. This guide will shed some light on the changes being made to Companies House and provide some guidance for companies as the Act comes fully into force.

What is ECCTA?

ECCTA is aimed at addressing corporate crimes, such as money laundering and fraud. As part of this, the legislation increases business transparency and accountability. These aims are realised through a number of provisions, including the introduction of a new offence, failure to prevent fraud, and the growing powers given to the statutory register, Companies House. As these changes come into force, companies will be required to comply with more checks on their company and its filings.
Identity Verification

By November 2026, it is expected that identity verification for directors and PSCs of any company will be required to verify their identity. Currently, new directors and PSCs have already been required to do this, but this will be rolled out to all directors and PSCs towards the end of this year as the transition period for verification ends. Only verified persons will be able to file on behalf of a company.

This verification can be either directly through Companies House, or indirectly through an Authorised Corporate Service Provider (“ACSP”). ACSPs are usually accountants or solicitors who are able to verify identity or file on behalf of companies.

It is important the companies consider whether they will be compliant with these rules by November 2026 and that anyone responsible for filings in the company will have been verified. Companies House will be able to penalise unverified individuals recorded on the register, including with a financial penalty or by the individual from making new filings.

Suspicious or False Information 

ECCTA also gives Companies House additional powers so that they can improve the accuracy of the register. Since March 2024, Companies House has been able to query or reject any filings that they view as false, suspicious, or inconsistent. 

Although these powers in tandem with the identity verification will help to ensure integrity of the register, it is more important than ever that businesses are careful and are supplying correct information.