With the Economic Crime and Corporate Transparency Act ("ECCTA") coming into force, a significant change for businesses in the UK is imminent: over 7 million Directors, LLP Members and Persons with Significant Control ("PSCs") must have their identity verified from autumn 2025 - either directly via Companies House or via an authorised service provider ("ACSP"). In this article, we explain what is behind the new identity verification obligation under the ECCTA, whether you are affected and how you can fulfil your legal obligation in a legally compliant manner - ideally digitally and efficiently via notarity.
What is the ECCTA?
The ECCTA is a British reform law aimed at combating white-collar crime and significantly increasing transparency in the company register. The centrepiece of the reform is the reorganisation of Companies HouseA pure register office will become an active supervisory body that will not only receive data in future, but will also check its accuracy and intervene in the event of discrepancies. The company register should no longer offer a platform for non-transparent structures, letterbox companies or straw men, but instead provide reliable and verified information. To achieve this, the ECCTA is now focusing on stricter reporting obligations, new inspection rights and, above all, a mandatory identity check for all persons who manage or control companies. The aim is to strengthen trust in the British corporate landscape and effectively prevent abuse.
Who is specifically affected by the identity verification obligation under the ECCTA?
The obligation to verify identity applies to the following groups:
- Directors [Managing director:inside]: Already ordered Directors must have their identity confirmed from autumn 2025. In future, working as a Director is no longer permitted without a verified identity.
- LLP Members [Members of a limited liability partnership]: All members - even if they are legal entities - must prove the identity of their authorised representatives.
- PSCs [Beneficial owner]: In future, beneficial owners will also be obliged to prove 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 dismiss the majority of the Board of Directors.
What does the identity verification requirement now mean for Directors, LLP Members and PSCs concrete?
Since 8 April 2025, identity verification has been mandatory for Directors, LLP Members and PSCs possible on a voluntary basis. However, this will become mandatory from autumn 2025: from this point onwards, identity verification will become a fixed component when setting up new companies and appointing new directors and PSCs. In addition, a twelve-month transition phase will begin, during which the more than 7 million existing Directors and PSCs their identity as part of the annual Confirmation Statement have to verify. The transition phase should be completed by the end of 2026. From this point onwards Companies House start monitoring and enforcing the identification obligation and take targeted action against individuals or companies that have not fulfilled their legal obligations.
What happens in the event of violations of the identity verification obligation under the ECCTA?
Failure to comply with the identity verification obligation under the ECCTA constitutes a breach of the legal requirements and may be subject to a currently unlimited fine. If the lack of verification delays the timely filing of the Confirmation Statement, additional fines may be imposed for late reporting. It is also a criminal offence to knowingly provide false, misleading or deceptive information to Companies House - including in connection with identity verification. Deliberate deception in particular can result in fines as well as imprisonment.
How does verification work?
To fulfil the identity verification obligation under the ECCTA, data subjects can choose between two procedures:
- Directly via Companies House - Verification via Companies House can be carried out in three ways: via 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 identity) or in person at selected post offices in the UK - but only for people with a British residential address.
- About an Authorised Corporate Service Provider ("ACSP") - e.g. a notary who has registered as an ACSP in accordance with ECCTA. Since 8 April 2025, such professional service providers - such as notaries or lawyers - have been allowed to carry out identity checks and issue an official Verification Statement on behalf of their clients directly with Companies House submit. 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 via remote access. The platform connects users with notaries who are registered as ACSPs. They are authorised to carry out the legally required identity verification and issue the necessary Verification Statement directly to Companies House transmit. So you can Directors, LLP Members and PSCs can fulfil their obligations under the ECCTA easily, quickly and legally compliant online - without physical appointments or time-consuming bureaucracy.
Ready for the new ECCTA requirements? Start now - with notarity, you can complete the identity check digitally and with legal certainty. Book your notary appointment here!
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