The clock is ticking for millions of UK business leaders. With the Economic Crime and Corporate Transparency Act 2023 (ECCTA) enforcement date rapidly approaching, directors, persons with significant control (PSCs), and LLP members face a crucial deadline that could significantly impact their ability to operate.

If you haven’t started preparing for the new mandatory identity verification requirements, now is the time to act. Here’s everything you need to know about this landmark change in UK corporate governance.

Understanding the ECCTA Revolution

The ECCTA isn’t just another piece of bureaucratic red tape—it’s a fundamental transformation of how the UK regulates corporate transparency. Designed to crack down on money laundering, fraud, and the misuse of UK corporate structures, this legislation introduces the most comprehensive identity verification regime the country has ever seen.

Starting 18 November 2025, anyone serving as a company director, PSC, or LLP member must have their identity verified before they can legally fulfill their role. This affects an estimated 5 million individuals across the United Kingdom, making it one of the largest compliance operations in British business history.

Why the Government Is Taking Such Drastic Action

For years, the UK has faced criticism for allowing its corporate system to be exploited by criminals and corrupt individuals. Anonymous shell companies, nominee directors, and opaque ownership structures have enabled everything from tax evasion to international money laundering schemes.

The ECCTA is the government’s answer to these problems. By requiring robust identity verification for all key individuals in UK companies, authorities hope to:

• Eliminate the use of fake or stolen identities in corporate structures
• Prevent disqualified directors from operating under false names
• Increase accountability and transparency across the business landscape
• Make the UK a less attractive destination for illicit financial activity

Who Exactly Is Affected?

The scope of ECCTA’s identity verification requirements is broad and encompasses:

All company directors, whether appointed before or after the legislation comes into force. This includes executive directors, non-executive directors, and shadow directors in certain circumstances.

Persons with Significant Control (PSCs), individuals who own more than 25% of shares or voting rights, or who otherwise exercise significant influence over a company.

Members of Limited Liability Partnerships, including both designated members and ordinary members.

Relevant Legal Entities (RLEs) that qualify as PSCs must nominate at least one individual officer to undergo verification on behalf of the entity.

Even if you’ve been a director for decades or your company has operated for years without issue, you’re not exempt. The requirement applies universally, with very limited exceptions.

Your Verification Options Explained

The legislation provides three distinct routes for completing your identity verification, each with its own advantages and considerations:

Route 1: Direct Verification Through Companies House

Companies House offers its own digital verification service, allowing individuals to verify their identity directly with the registrar. This option typically involves uploading identity documents (such as a passport or driving license) and completing biometric checks using a smartphone or computer with a camera.

Advantages: Direct relationship with the official registrar, no intermediary fees.

Disadvantages: Technical requirements may be challenging for some users, and customer support can be limited during peak periods.

Route 2: Using an Authorized Corporate Service Provider (ACSP)

ACSPs are organizations specifically authorized to conduct identity verification on behalf of Companies House. They must meet stringent regulatory standards and maintain appropriate anti-money laundering procedures.

Advantages: Professional assistance, potential for in-person verification, bundled services with other corporate compliance needs.

Disadvantages: Additional costs, quality and pricing vary significantly between providers.

Route 3: Through Regulated Professionals

Solicitors, accountants, and other regulated professionals who already have robust client verification procedures may be able to verify identities as part of their existing services.

Advantages: Convenient if you already work with these professionals, integrated with other legal or financial services.

Disadvantages: May require an existing client relationship, costs can be substantial.

For comprehensive guidance on navigating these options, The Edinburgh Reporter provides detailed coverage of ECCTA identity verification requirements and their impact on UK businesses https://theedinburghreporter.co.uk/2025/09/big-shake-up-in-company-law-eccta-identity-verification-i-5m-people-affected/.

Common Problems and How to Avoid Them

Early adopters of the verification process have encountered several recurring issues:

Document Rejection

Poor quality scans, expired documents, or mismatches between names on different documents frequently cause verification failures. Ensure all your identity documents are current and that names match exactly across all submissions.

Technical Difficulties

Digital verification systems require specific devices, browsers, and lighting conditions. Test your setup before starting the formal process, and have alternative devices available if needed.

Processing Delays

As the November deadline approaches, verification providers are experiencing significant backlogs. What might take days now could take weeks as millions rush to comply. Don’t wait until the last minute.

Cost Confusion

Many ACSPs don’t clearly advertise their fees upfront, leading to surprise charges mid-process. Always confirm total costs in writing before beginning verification.

What Happens If You Miss the Deadline?

The consequences of non-compliance are serious and immediate. After 18 November 2025, unverified individuals may:

• Be unable to file documents with Companies House
• Face removal from the register of directors or PSCs
• Find their companies unable to make official changes or updates
• Risk personal liability for acting in a role without proper verification
• Face potential criminal penalties in cases of deliberate non-compliance

For companies, having unverified directors or PSCs could mean:

• Inability to conduct routine business operations
• Complications with banking and financing arrangements
• Reputational damage with clients, suppliers, and partners
• Potential regulatory enforcement action

International Directors: Special Considerations

If you’re a director or PSC based outside the UK, verification may be more complex. You’ll need to:

• Ensure your identity documents meet UK requirements
• Navigate international document verification standards
• Consider whether in-person verification might be necessary
• Account for additional processing time due to cross-border checks

Some ACSPs specialize in international verification and may offer services tailored to non-UK residents. Research your options carefully and start the process well ahead of the deadline.

Preparing Your Company for ECCTA Compliance

Beyond individual identity verification, companies should take several organizational steps:

Audit your current director and PSC register to ensure all listed individuals are aware of the new requirements.

Establish a compliance timeline that gives each individual adequate time to complete verification well before November.

Budget for verification costs, particularly if you’ll be using ACSP services for multiple individuals.

Update internal procedures to ensure that future director or PSC appointments include identity verification as a standard step.

Communicate with stakeholders about potential temporary disruptions during the transition period.

The Silver Lining: A More Trustworthy Business Environment

While the short-term compliance burden is significant, ECCTA ultimately benefits legitimate businesses. A more transparent corporate environment means:

• Enhanced trust from customers, investors, and partners
• Reduced competition from fraudulent or criminal enterprises
• Stronger reputation for UK businesses internationally
• Clearer accountability structures within organizations

Companies that embrace these changes proactively may find competitive advantages in demonstrating their commitment to transparency and good governance.

Take Action Now

With millions of individuals needing to verify their identities and only months remaining until enforcement begins, the time for action is now. Don’t become part of the last-minute rush that could leave you scrambling to maintain your business operations.

Start by reviewing your current director and PSC structure, researching your verification options, and initiating the process with whichever route best suits your circumstances. The few hours you invest now could save you weeks of complications and stress as the November 2025 deadline approaches.

The ECCTA represents a new era in UK corporate governance—one defined by transparency, accountability, and trust. By preparing properly, you’ll not only comply with the law but also position your business as a responsible participant in this more rigorous business environment.