ECCTA: Understanding new identity verification requirements
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) has introduced new mandatory identity verification (IDV) requirements in the UK to enhance transparency and combat economic crime. These changes apply to individuals setting up, running, owning or controlling a company in the UK.
IDV requirements
IDV requirements under the ECCTA regime currently apply to:
- New and existing company Directors (regardless of country of residence)
- New and existing Persons with Significant Control (PSCs)
- Members of UK Limited Liability Partnerships (LLPs)
Companies House has confirmed that IDV requirements will be extended at a later date to include:
- People who file at Companies House
- Limited partnerships
- Corporate directors of companies
- Corporate members of LLPs
- Officers of corporate PSCs
IDV routes
There are three approved methods for completing IDV:
1. Authorised Corporate Service Provider (“ACSP”)
Verification checks can be carried out by an ACSP using approved technology or processes, with the ACSP confirming the outcome to Companies House.
2. Companies House
Individuals may independently complete the IDV check online directly through the Companies House service by submitting an identity document and live photo.
3. Post Office
Individuals can initiate the process online, then attend a participating Post Office branch with valid ID. The branch will check the ID and take a live photo, with results returned to Companies House.
The chosen route determines which identity documents the individual is required to provide.
Once verified, Companies House will issue a personal authentication code to each individual. This code is required for all future filings and must be securely retained. Verification is a one-time requirement, with no need for re-verification unless circumstances change.
When does this take effect?
- Voluntary verification started on April 8, 2025.
- Mandatory verification for new directors, PSCs, and LLP members on incorporation or appointment begins on November 18, 2025.
- Existing directors, PSCs, and LLP members have a 12-month transition period starting November 18, 2025, to verify their identities, generally linked to their company's next annual confirmation statement.
- Individuals filing documents at Companies House will need to verify their identity by Spring 2026.
Failure to comply
Failure to verify and comply with the IDV requirements on time may be considered an offence and may lead to financial penalties or fines. Also, non-compliance can prevent unverified individuals from legally acting in their registered capacity, creating reputational and commercial risk. Companies with unverified directors may face restrictions when filing documents with Companies House.
How can Ocorian help?
As a registered ACSP, Ocorian is authorised to:
Verify the identity of directors, PSCs, LLP/LP members, and individuals filing documents with Companies House.
Submit filings such as confirmation statements and changes to company information on your behalf.
Provide proactive compliance support to keep your company aligned with evolving UK regulations.
Engaging Ocorian offers a range of advantages such as:
Streamlined identity verification and filing processes through our compliant internal platform.
Assurance that all verifications and filings meet the latest Companies House standards.
Reduced risk of non-compliance, thanks to expert guidance and ongoing monitoring.
Comprehensive support for directors and PSCs based outside the UK.
Continuous assistance as regulations evolve, including transition planning for mandatory IDV enforcement.