Economic Crime and Corporate Transparency Act changes

These regulatory changes will impact all businesses in the UK, making it vital for directors and business owners to familiarise themselves with the key updates outlined in the Economic Crime and Corporate Transparency Act.

Compulsory identity verification for directors and persons of significant control

Beginning later this year, it will become a legal requirement for company directors and persons of significant control to verify their identities with Companies House. Important details include:

• Existing directors and persons of significant control must complete the identity verification process within 12 months of the official implementation date, anticipated for Autumn 2025.
• All directors and persons of significant control must undergo verification before submitting their annual confirmation statement, in line with UK company registration requirements.
• New directors appointed after the implementation date are required to verify their identities immediately upon their appointment, applicable also to newly registered companies.

The identity verification can be completed through the following methods:

1. Online via the Companies House portal by the director or person of significant control.

2. In-person at designated Post Office branches.

3. or through an authorised corporate service provider in the UK.

This initiative is designed to enhance transparency and reduce the risk of fraudulent or anonymous control over UK companies, in line with the objectives of the Economic Crime and Corporate Transparency Act.

Mandatory electronic filing of financial accounts

Starting from 1 April 2027, all companies will be obliged to file their financial accounts electronically using authorised accounting software. This transition will eliminate the option for submitting paper-based accounts and will affect all businesses, whether they handle financial reporting internally or through external accountants.

Preparing for the new regulations

To ensure a smooth transition, businesses should undertake the following actions:

· Identify which directors need verification and establish deadlines accordingly.

· Update appointment procedures to comply with the new identity verification requirements.

· Assess current accounting systems to ensure they are equipped for future electronic filing obligations.

Get in touch with our company Secretarial team

Take proactive measures to maintain compliance with these changes. Our team is prepared to evaluate your existing practices and offer tailored advice on identity verification and electronic filing requirements under the Economic Crime and Corporate Transparency Act.

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