What is the Economic Crime and Corporate Transparency Act 2023?

Introduction to the Economic Crime and Corporate Transparency Act 2023

The Economic Crime and Corporate Transparency Act 2023 introduces a significant overhaul of corporate reporting and accountability in the UK. From autumn 2025 (date to be confirmed), new requirements are expected to mandate that all company directors, persons with significant control (PSCs), and relevant legal entities (RLEs) verify their identity with Companies House. Corporate Law Solicitors like Fosters Solicitors are prepared to assist you in complying with these obligations efficiently and legally.

This landmark piece of legislation aims to strengthen the integrity of corporate information held at Companies House, making it harder for criminals to exploit companies for economic crime. As part of these changes, only verified individuals will be able to incorporate companies, take up certain roles (e.g. director or PSC), or file certain documents with Companies House.

What is the Economic Crime and Corporate Transparency Act 2023?

The Economic Crime and Corporate Transparency Act 2023 is a legislative framework introduced by the UK government to improve transparency in corporate ownership, reinforce the role of Companies House, and deter economic crime. It builds upon the Economic Crime (Transparency and Enforcement) Act 2022 and is part of a broader initiative to counter illicit financial activity in the UK.

The Act introduces mandatory identity verification for key individuals involved in UK corporate entities, impacting how businesses operate and report their governance structures.

Who needs to verify their identity?

Under the Act, the following must verify their identity:

• All company directors (new and existing).
• Persons with Significant Control (PSCs).
• Relevant Legal Entities (RLEs) – through a nominated individual.
• Certain individuals who file documents at Companies House in their own capacity (e.g. some company secretaries).

PSCs are individuals who own more than 25% of shares or voting rights in a company or otherwise exert significant influence or control. RLEs, which are often corporate shareholders, must nominate a natural person as their ‘relevant officer’ for identity verification purposes.

Verification deadlines and processes

Companies House will enforce identity verification as follows:

• Existing Directors and PSCs: It is currently anticipated that they must verify their identity before the next confirmation statement filing, after the new identity verification provisions of the Act come into force in autumn 2025.
• New Directors and PSCs: Must verify identity before Companies House registers their appointment.
• RLEs: Must nominate a relevant officer whose identity must be verified within 28 days of becoming registrable.

Failure to comply may result in criminal or civil penalties, including fines and/or director disqualification.

Why early compliance is important

Although mandatory verification under the Act is expected to start in autumn 2025, Companies House already supports voluntary ID verification. Early completion of this process is strongly recommended to avoid delays and ensure readiness once the legal requirements are in force.

More information about the legislation is available from the UK Government’s official announcement.

How Fosters Solicitors can help

Fosters Solicitors is a registered Authorised Corporate Service Provider (ACSP), authorised by Companies House to carry out identity verifications on behalf of clients. As an ACSP, we operate under strict anti-money laundering regulations and provide end-to-end support in fulfilling your obligations under the new legislation.

Our identity verification pricing

• £120 + VAT for one director or shareholder.
• £200 + VAT for two directors or shareholders.
• £265 + VAT for three directors or shareholders.
• £50 + VAT per additional individual beyond three.

We use secure, market-leading, third-party software to handle digital ID checks, offering convenience and reliability. We will handle the process on your behalf, beginning to end, verifying your identity to the required standard and ensuring a smooth and easy process. You just need to provide some basic details, which can be entered directly into our online verification form (see below).

Simple steps to get verified

1. Complete our online verification form (see below).
2. Provide details about your company and the directors or PSCs requiring ID checks.
3. We’ll verify your ID in a secure and straightforward fashion.
4. Once verified, your ID remains valid for all current and future directorships and PSC roles unless Companies House expressly requests re-verification.

Get IDV-ready today

To ensure you meet the requirements of the Economic Crime and Corporate Transparency Act 2023, we strongly encourage early engagement. At Fosters Solicitors, our dedicated Corporate team is here to guide you every step of the way.

Begin your ID verification today by completing our online form. For more tailored advice, please contact our team directly.

FAQs

What is the Economic Crime and Corporate Transparency Act 2023?

It is UK legislation aimed at increasing transparency in company ownership and reducing financial crime. It mandates identity verification for company directors, PSCs, and RLEs.

Who needs to verify their identity?

All company directors, PSCs, and RLEs through their nominated officer must verify their identity with Companies House. This also includes certain individuals who file documents at Companies House in their own name (e.g. some company secretaries).

How can I verify my ID for Companies House?

You can verify your identity through an Authorised Corporate Service Provider (ACSP) like Fosters Solicitors LLP.

When does identity verification become mandatory?

It is expected to become mandatory from autumn 2025. Exact dates will be confirmed by Companies House.

Is identity verification required for shareholders too?

Yes, if the shareholder qualifies as a PSC (owning more than 25% of shares or voting rights or otherwise exerting significant influence or control), they must undergo identity verification.

What happens if I don’t comply?

Failure to comply may result in penalties such as fines or disqualification from serving as a director.

Can I verify early?

Yes. Voluntary verification is already available and encouraged to avoid future delays and penalties.

This article was produced on the 30th June 2025 for information purposes only and should not be construed or relied upon as specific legal advice.