Companies House is changing: what businesses need to know about the Economic Crime & Corporate Transparency Act 2023

Companies House is changing: what businesses need to know

Lydia Sevenoaks, Corporate

The incoming reforms relating to Companies House filings form part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which aims to tackle economic crime and prevent misuse of corporate structures, strengthening the UK’s anti-money laundering (AML) measures and improving the prospects of investigating and recovering assets.

A crucial aspect of this legislation focuses on transparency surrounding who is filing information at Companies House for registered entities, making Companies House a more active “gatekeeper” of company data.

The first step

Voluntary identity verification began for directors, LLP members and persons with significant control in April of this year, as the start of a phased approach, with such verification to become mandatory later in the year.

This strengthens the regulation of entities registered with Companies House, with existing entities and new start-ups being required to verify their key individuals’ ID via Companies House directly.

Authorised Corporate Service Provider (ACSP)

Whilst directors of companies can make filings at Companies House, many companies rely on third parties, such as solicitors and accountants, to attend to these tasks.

In order to continue providing such services, these professionals’ employers will need to register as an ACSP. Only organisations that are supervised in the UK by a designated AML body will be able to register.

For now, only those who intend to verify the identity of clients need to register – this would include company formation agents, for example. From Spring 2026, however, anyone who files with Companies House on behalf of clients will need to register.

The registration process requires a senior individual within the business, such as a director or partner, to apply and verify their own identity. Upon successful registration, the ACSP will receive a digital account to perform identity verification checks and file documents on behalf of clients.

Once registered, the ACSP can also then add those who work for the ACSP to their account – these individuals will not need to separately verify their identity.

Implementation timeline

• 18 March 2025: Anti-money laundering supervised firms and sole traders can apply to become ACSPs.
• 8 April 2025: Voluntary identity verification began for directors, LLP members, and persons with significant control (“PSCs”).
• Autumn 2025: Mandatory identity verification commences, with a 12-month transition period for existing directors and PSCs to comply.
• Spring 2026: All presenters of information to Companies House, including third-party agents, must be registered as ACSPs.

Once registered, there is a duty on ACSPs to keep their information up-to-date and, if requested, to provide more information about the filings they have made and to evidence compliance with their legal responsibilities.

ACSPs must comply with AML regulations, maintain accurate records, and promptly update Companies House with any changes. Failure to meet these obligations can result in penalties, suspension or revocation of ACSP status and, in severe cases, criminal prosecution.

Following the changes, only ID-verified individuals and ACSPs will be able to file documents with Companies House, with the aim of preventing misuse of and increasing the legitimacy of corporate structures and, related to that, the accuracy and reliability of the supporting records held.

The importance of accurate Companies House records

It is crucial for businesses to keep their Companies House records up to date and ensure they are accurate because these records form part of the official public register, which is relied upon by investors, lenders, potential acquirers, regulators, and other businesses when making decisions and conducting their own due diligence on a business.

Compliance with Companies House requirements is a legal obligation, and inaccurate or outdated information can lead to reputational damage, legal penalties, delays in securing finance, and potential questions being raised upon an eventual sale, which can be costly to resolve and, in some cases, potentially jeopardise a deal.

Organisations and individuals involved in company filings should prepare for the upcoming changes by understanding the new requirements and ensuring compliance. This will ensure a smooth transition such that they can continue filing relevant documents at Companies House once the changes have come into force, and ensure that any legal repercussions of non-compliance are avoided.

Get in touch for further information on the changes that are being introduced under ECCTA, or any wider company-related queries.