The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduces the most significant changes to Companies House since it started in 1844. Designed to tackle economic crime and improve corporate transparency, the legislation brings wide-reaching reforms that affect directors, company secretaries, people with significant control (PSCs), and registered entities themselves.
The ECCTA impacts everyone who interacts with Companies House, whether individuals or entities. This includes all directors, secretaries, and people with significant control of entities registered at Companies House. It also affects the entities themselves, including companies, limited partnerships, limited liability partnerships (LLPs), and overseas entities. Agents providing company secretarial services will also feel the impact. Below we outline the key changes the ECCTA introduces.
- Mandatory ID verification for directors and PSCs
- Digital filing and new reporting requirements
- New ‘failure to prevent fraud’ offence
- Changes to reporting thresholds and disclosures
- Additional Companies House reforms
- Key implementation dates
Mandatory ID verification for directors and PSCs
To increase transparency around the individuals who control UK companies and LLPs, the government is implementing ID verification. The verification is currently voluntary but will become mandatory from Autumn 2025.
- Directors must complete ID verification before the mandatory implementation date or before taking up their role.
- People with significant control (PSCs) must complete ID verification within 14 days of the mandatory implementation date or within 14 days of taking up the role.
Digital filing and new reporting requirements
Companies, LLPs, and limited partnerships may be required to file more detailed information at Companies House, and they must use digital filing methods starting 1 April 2027.
- Small and micro entities lose their reduced filing provisions and must file full accounts, including a Profit & Loss account.
- All financial statements must be filed digitally using appropriate software. Companies House will no longer accept paper filings or filings via its website.
New ‘failure to prevent fraud’ offence
The Act creates a new corporate offence to reduce fraud through UK companies.
- If a person associated with a large company commits a fraud offence intending to benefit the company, its subsidiaries, or any individual they serve, the company can be held guilty.
- This legislation takes effect from 1 September 2025.
Changes to reporting thresholds and disclosures
The Act introduces substantial changes to what companies, LLPs, and limited partnerships must include in their annual financial statements:
- The Companies Act 2006 size thresholds will change, so more companies will qualify as micro, small, or medium.
- The Department of Business and Trade will launch a consultation on non-financial reporting (including Strategic and Directors’ Reports) in Summer 2025.
Additional Companies House reforms
Throughout 2024, Companies House implemented several smaller changes that now apply to all companies and LLPs. These include:
- Requiring appropriate registered postal and email addresses
- Confirming the lawful purpose of businesses
- Enhancing enforcement and sanction powers for Companies House
Key implementation dates
