ECCTA 2025: mandatory identity verification for directors and PSCs

With the Economic Crime and Corporate Transparency Act (“ECCTA”) coming into force, a significant change is imminent for businesses in the UK: from autumn 2025, more than 7 million directors, LLP members and persons with significant control (“PSCs”) must have their identity verified – either directly via Companies House or via an authorised corporate service provider (“ACSP”). In this article, we explain what lies behind the new identity verification requirement under the ECCTA, whether you are affected and how you can meet your legal obligation in a compliant way – ideally digitally and efficiently via the notarity platform.

What is the ECCTA?

The ECCTA is a British reform law aimed at combating economic crime and significantly increasing transparency in the companies register. At the heart of the reform is the transformation of Companies House: a pure registry is becoming an active supervisory body that will not only receive data in future, but also check its accuracy and intervene where there are discrepancies. The register should no longer offer a platform for opaque structures, letterbox companies or nominee front men, but should instead provide reliable, verified information. To achieve this, the ECCTA relies on stricter reporting obligations, new powers of scrutiny – and above all on mandatory identity verification for everyone who manages or controls a company. The aim is to strengthen trust in the British corporate landscape and effectively prevent abuse.

Who exactly is affected by the identity verification requirement under the ECCTA?

The identity verification requirement applies to the following groups:

• Directors: Directors who are already appointed must have their identity verified from autumn 2025. In future, acting as a director without a verified identity will no longer be permitted.
• LLP members: All members of a limited liability partnership – even if they are legal entities – must verify the identity of the persons authorised to represent them.
• PSCs: In future, persons with significant control (beneficial owners) will also be required to verify their identity. A PSC is usually someone who i) holds more than 25% of the shares in a company, ii) controls more than 25% of the voting rights, or iii) has the right to appoint or remove a majority of the board of directors.

What does the identity verification requirement mean in practice for directors, LLP members and PSCs?

Since 8 April 2025, directors, LLP members and PSCs have been able to verify their identity on a voluntary basis. From autumn 2025, however, verification becomes mandatory: from then on, identity verification will be a standard part of incorporating new companies and appointing new directors and PSCs. In addition, a twelve-month transition period begins, during which the more than 7 million existing directors and PSCs must verify their identity as part of their annual confirmation statement. The transition period is due to end by the end of 2026. From that point, Companies House will begin monitoring and enforcing the verification requirement and will take targeted action against individuals or companies that have not met their legal obligations.

What happens if the identity verification requirement under the ECCTA is breached?

Failure to comply with the identity verification requirement under the ECCTA is a breach of the law and can currently be punished with an unlimited fine. If the lack of verification delays the timely filing of the confirmation statement, additional penalties for late filing may be imposed. It is also a criminal offence to knowingly provide false, misleading or deceptive information to Companies House – including in connection with identity verification. In cases of deliberate deception in particular, prison sentences may be imposed in addition to fines.

How does verification work?

To meet the identity verification requirement under the ECCTA, those affected can choose between two routes:

• Directly via Companies House – verification via Companies House can be done in three ways: using the GOV.UK One Login Check app (e.g. with a biometric passport or UK driving licence), via the GOV.UK One Login web service (with additional questions about your identity) or in person at selected post offices in the UK – although the last option is only available to people with a UK residential address.
• Via an authorised corporate service provider (“ACSP”) – e.g. notaries who have registered as an ACSP under the ECCTA. Since 8 April 2025, professional service providers such as notaries or lawyers have been allowed to carry out identity verification and submit an official verification statement directly to Companies House on behalf of their clients. Registration as an ACSP has been possible since 18 March 2025.

How can notarity support the process?

notarity enables secure, fully digital identity verification – conveniently and remotely. The platform connects users with notaries who are registered as ACSPs. These notaries are authorised to carry out the legally required identity verification and submit the necessary verification statement directly to Companies House. This means directors, LLP members and PSCs can meet their obligations under the ECCTA online simply, quickly and with legal certainty – without in-person appointments or time-consuming bureaucracy.

Ready for the new ECCTA requirements? Get started now – via the notarity platform, you can complete your identity verification digitally and with legal certainty. Book your online appointment with a partner notary here!