top of page

What the Economic Crime and Corporate Transparency Act Means for UK Directors

  • Writer: Helen Davies
    Helen Davies
  • Oct 6
  • 3 min read

Published by Finsight Advisory | October 2025


Companies House identity verification

Introduction

A major shift in corporate governance is coming. From November 2025, every UK company director, Person with Significant Control (PSC), and certain other individuals must have their identity verified through Companies House.


This is part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA) — a reform designed to improve transparency, reduce fraud, and strengthen confidence in the UK business register.


As an Authorised Corporate Service Provider (ACSP), Finsight Advisory is now approved by Companies House to verify identities and file documentation on behalf of clients. Here’s what business leaders need to know.


Why Identity Verification Matters

The ECCTA represents the most significant overhaul of UK company registration in decades. Its core objective is to make the register more reliable by confirming that the people behind UK companies are real, verified individuals.


For years, fake or fraudulent director appointments have undermined trust in the system. From 2025, that will no longer be possible — every company officer and PSC will need verified proof of identity.

(Source: GOV.UK – ECCTA Factsheets)


Who Must Verify and When


Voluntary phase (from April 2025):Individuals will be able to verify their identity early using the GOV.UK One Login system or through an ACSP like Finsight Advisory.


Mandatory phase (from November 2025):

  • New directors and PSCs – must verify before appointment or registration.

  • Existing directors and PSCs – must complete verification within 12 months, typically aligned with their company’s next confirmation statement.

  • Filing agents – anyone submitting documents to Companies House must also be verified by 2026.

Failure to comply could mean rejected filings, financial penalties, or being unable to act legally as a director or PSC.

(Sources: Ocorian, Taylor Wessing, K&L Gates)



Practical Implications for Business

  1. Operational impact – Unverified individuals cannot be legally appointed or file updates. This could delay critical transactions.

  2. Compliance risk – Non-compliance could lead to enforcement action and reputational damage.

  3. Reputation and trust – Verified directors signal robust governance, which may improve stakeholder confidence.

  4. Time pressure – Thousands of companies will be verifying at once before the deadline; acting early prevents backlogs.



How Finsight Advisory Supports You

As an approved Authorised Corporate Service Provider (ACSP), Finsight Advisory can:

  • Verify the identity of your directors, PSCs and LLP members directly with Companies House.

  • File company documents (incorporations, changes, confirmation statements).

  • Ensure your filings comply fully with anti-money-laundering (AML) supervision.

  • Advise on documentation, timing, and ongoing compliance.


Working with an ACSP ensures accuracy, data protection, and peace of mind — while freeing your internal team to focus on strategic work.


What You Should Do Now

  1. List all individuals in your organisation who will need verification (directors, PSCs, LLP members).

  2. Collect valid identity documents now (passport, driving licence, biometric permit).

  3. Consider verifying early during the voluntary window from April 2025.

  4. Update your company registers to reflect upcoming changes.

  5. Engage Finsight Advisory to manage the verification and filings on your behalf.


Finsight’s View

These reforms will help protect honest businesses and restore faith in the UK’s corporate ecosystem, but preparation is key. The process will become mandatory, not optional, and delays or incomplete verifications could stall your ability to trade or appoint directors.


By acting early, you safeguard your company’s compliance and reputation. Finsight Advisory stands ready to help every client navigate the transition with minimal disruption.


Key Takeaways

  • From November 2025, identity verification becomes mandatory for all company directors and PSCs.

  • Finsight Advisory is officially registered as an Authorised Corporate Service Provider (ACSP).

  • Verification ensures compliance, reduces fraud, and enhances corporate transparency.

  • Businesses should prepare early to avoid last-minute disruption.










References

 
 
 

Comments

bottom of page