The Economic Crime and Corporate Transparency Act (ECCTA) 2023 represents a huge overhaul in UK company law. With it being nearly two years since the act came into effect, thus creating a new framework for Companies House and how it operates, it’s important to establish what the reforms mean for businesses and their regulatory compliance obligations.
The reforms to Companies House are inherently designed to improve transparency, foster greater overall information integrity of companies on the public register and, most significantly, tackle economic crime.
For businesses, directors, and their professional financial and tax advisers, understanding these changes will serve them well in the long run. The reforms are being implemented gradually, some of which are already in effect, and others are scheduled to roll out through 2026, which isn’t far away.
This guide breaks down the most significant changes and what they mean for your business.
What Prompted the ECCTA and Companies House Reforms?
The ECCTA emerged from growing concerns about the UK’s vulnerability to economic crime and money laundering.
Companies House, historically operating as a passive registry, has often been criticised for accepting information without stringent and sufficient verification measures being enforced.
The reforms are, essentially, to transform it into an entity that regulates and scrutinises filings with more precision, leading to (hopefully) a reduction in suspicious, inaccurate or misleading information on the open-source, public register.
The act gives Companies House the power to play a more significant role in tackling financial crime and supporting economic growth. It represents a much-needed change in philosophy, turning it from a database and repository of information into an active, committed entity working diligently to uphold business integrity.
New Identity Verification Requirements
Perhaps the most significant change for directors and persons with significant control (PSCs) is the introduction of mandatory identity verification when submitting to Companies House.
Who Must Verify and When?
| Role | Verification Required | Timeline |
| New directors and PSCs | At appointment/incorporation | From 8th April 2025 |
| Existing directors and PSCs | During the 12-month transition window | From Autumn 2025 (date TBC) |
| LLP members | At appointment/incorporation | From 8th April 2025 |
| General partners (LPs) | At appointment/incorporation | From 8th April 2025 |
| Authorised corporate service providers | At registration | From 8th April 2025 |
What You Need to Verify Your Identity Via Companies House
- Ensure all relevant business directors and PSCs have valid and up-to-date identification documents
- Review current appointment procedures
Before the autumn 2025 deadline, it’s important to:
- Familiarise yourself with the verification process
- Consider early voluntary verification to avoid delays
- Update internal processes for new appointments
- Plan verification around annual confirmation statements
More Responsibilities for Companies House
The ECCTA gives Companies House more duties and powers to scrutinise and reject filings. Below is a summary of them.
| Power | Description | Impact |
| Query filings | Review information before acceptance | Delays are possible for suspicious submissions |
| Reject filings | Refuse suspicious or inconsistent information | Submissions may be returned for correction |
| Cross-reference data | Compare with other databases | Enhanced detection of discrepancies |
| Annotate register | Flag unreliable information publicly | Warnings are visible to the public during investigations |
| Data sharing | Enhanced cooperation with law enforcement | More effective economic crime detection |
What Does This Mean for Your Business?
From the outset, expect:
- Longer processing times for complex business filings
- Greater scrutiny of information accuracy
- Potential queries or rejections for inconsistent data
In the long run, it’s important to ensure:
- All submissions are accurate and correct
- Any Companies House queries are responded to quickly
- Regular reviews of filed information for consistency
Changes to the PSC Register
The PSC register undergoes substantial enhancements to improve its overall accuracy and transparency.
In simple terms, more detailed information about beneficial ownership must be disclosed now, including:
- Enhanced verification of PSC identities
- Stricter requirements for identifying persons exercising significant influence
- Improved disclosure of complex ownership structures
- Additional information about the nature of control exercised
PSCs must now verify their identity, and companies must take reasonable steps to ensure the accuracy of PSC information.
Limited Partnership (LP) Reforms
Reforms to limited partnerships (LPs) will take place no sooner than spring 2026.
More details will follow in due course, but the expectation is that the reforms will address long-standing concerns about the opacity of limited partnerships.
Key changes include new registration requirements and transparency measures:
- All limited partnerships must register with Companies House
- Regular filing obligations similar to companies
- Partners must be identified and verified
- Limited partnership information will be publicly disclosed
- Regular confirmation statements will be necessary
- Any partnership details changes must be fed through to Companies House
- There are and will be penalties for non-compliance
Limited partnerships will, following the reforms, face stricter due diligence requirements, specifically centred around:
- Partner identification and verification
- Source of funds
- Nature of business activities
- Beneficial ownership structures
When Will the Companies House Reforms Take Effect?
The reforms are being implemented in carefully planned stages, allowing businesses time to prepare and adapt.
Key ECCTA Dates
| Date | Requirement | Action Required |
| Now | Enhanced filing scrutiny | Review current filing procedures |
| 8th April 2025 | Identity verification for new appointments | Implement verification for new directors/PSCs |
| Autumn 2025 | Mandatory verification for existing directors/PSCs | Complete verification during a 12-month window |
| Spring 2026 | Limited partnership reforms | Register LPs and comply with new requirements |
Prepare for the Transition With Hamlyns By Your Side
The ECCTA reforms represent a new era for UK corporate governance and transparency.
While the changes do bring forward more compliance obligations, their purpose is to improve the integrity and reliability of corporate business structures in the UK. Their aim is to strengthen the UK’s position as a trusted jurisdiction for international firms while addressing pertinent concerns about economic crime.
Fulfilling obligations and meeting this new criteria will no doubt require proactive planning, a rethink of compliance systems and, most importantly, expert professional support. The phased implementation will provide some much-needed leeway, however, and business owners can act early to put themselves in a better position to navigate and meet deadlines with confidence and peace of mind.
Contact Hamlyns today to discuss how these reforms affect your business and ensure you’re fully prepared for the transition to enhanced corporate transparency requirements.
