ID Verification: Economic Crime & Corporate Transparency Act 2023

The primary aims of the ECCTA are to enhance corporate transparency, provide more accurate and trusted information on the Register, and reduce economic crime facilitated through UK entities, therefore providing increased benefit to the UK economy, for both businesses, and individuals. 

These latest steps will require all Directors and People with Significant Control of UK companies (and equivalents for Limited Liability Partnerships) to have their ID verified in order to continue acting in that role. Voluntary ID verification will be available from 8 April 2025, with verification becoming mandatory from Autumn 2025. 

For companies incorporating after the implementation date in Autumn 2025, all directors of the company will need to have their ID verified prior to the incorporation date. Individuals who are PSCs will have 14 days from the date of incorporation to have their ID verified, and PSCs that are legal entities will need to appoint one “relevant legal officer”, whose identity will need to be verified within 28 days of incorporation. 

For existing companies, they will be required to comply with the requirements from the date of their first confirmation statement after the legislation is implemented. In a similar manner to newly-incorporated entities, all directors of existing entities will need to have their ID verified prior to the confirmation statement date.

Individuals that are PSCs will have 14 days from the confirmation statement date, and PSCs that are legal entities will need to appoint one “relevant legal officer”, whose identity will need to be verified within 28 days of the confirmation statement date.

What is it? 

• All Directors and People with Significant Control (PSCs) of UK companies and LLPs will need to have their ID verified in order to continue in that role
• Directors must have ID verified prior to effective date for their entity
• PSCs that are individuals must have ID verified within 14 days after effective date for their entity
• PSCs that are companies must appoint a “relevant legal officer” to have ID verified within 28 days of effective date for their entity
• Two methods of obtaining ID verification:
  • Using Companies House online system – via a biometric passport, a UK or EU photocard driving license or some other official documents
  • Using an Authorised Corporate Service Provider
• Each individual need only have their ID verified once, unless Companies House request a reverification
• Legislation will be extended to limited partnerships, overseas entities and other entities required to be registered at Companies House in due course

When is it effective? 

• Voluntary verification from 8 April 2025
• Mandatory verification:
  • All newly-incorporated entities from Autumn 2025
  • All existing entities from first confirmation statement date after Autumn 2025

How do I prepare? 

Review the Companies House records for your entities:

• Ensure Director and PSC information is up-to-date
• Ensure the names of all individuals agree to their passport / government ID
• Make a note of your confirmation statement date – this will determine when ID verification becomes a requirement for your entity.

Where can I get more information? 

As an Authorised Corporate Service Provider, Grant Thornton can assist you with these ID Verification requirements. Please contact Louise Kelly for more information.