The Economic Crime and Corporate Transparency Act 2023 (ECCT Act) is reshaping the UK’s corporate environment with the most significant overhaul of the company registration regime since Companies House was founded in 1844. These reforms mark a decisive shift towards greater transparency, stronger accountability and a more robust approach to tackling economic crime.
For law firms, particularly those advising company directors, property clients or owner-managed businesses, this new framework demands fresh awareness, better systems and an updated understanding of regulatory risk.
A New Regulatory Role for Companies House
One of the most substantial changes is the evolution of Companies House from a passive registrar into an active regulator. Its purpose is no longer simply administrative. Instead, it is now required to ensure that information on the register is accurate, lawful and reliable.
Since March 2024, the Registrar has held enhanced powers to question and reject suspicious filings, remove fraudulent entries and share intelligence with law enforcement. The register can no longer be viewed as a neutral database. It is becoming a gatekeeper for corporate legitimacy.
Why This Matters for Legal Practices
These reforms affect the everyday work of many law firms.
Much of the UK’s property market involves clients who serve as company directors or rely on SPVs for transactions. Firms also routinely incorporate entities, act as formation agents or handle Companies House filings on behalf of clients. Each of these activities is now subject to tighter scrutiny.
If your firm touches company information in any capacity, the reforms have a direct impact on your responsibilities.
Identity Verification: The Centrepiece of Reform
Identity verification is at the core of the ECCT Act.
As of 18 November 2025, identity verification became mandatory for all new directors and people with significant control (PSCs). Existing directors entered a 12 month transition period, with verification linked to the annual confirmation statement.
More than seven million individuals are expected to complete the verification process. The process is digital and can be carried out either directly through Companies House or via an Authorised Corporate Service Provider (ACSP).
ACSPs include law firms, accountants and other AML supervised professionals who are authorised to verify client identities and submit the results to Companies House. For firms choosing to become ACSPs, this brings both opportunity and regulatory responsibility. Strong AML controls, effective governance and detailed audit trails are essential.
Beyond Verification: Wider Reporting and Transparency Requirements
The reforms extend far beyond identity verification. Over the next two years, companies will face a series of major operational changes. Key developments include:
• Digital only filing of accounts: All accounts must be filed using approved software.
• Expanded financial reporting: Small and micro companies will need to submit profit and loss accounts and a directors’ report.
• Restrictions on corporate directors: Only UK registered corporate directors with natural person directors whose identities have been verified will be permitted.
• Mandatory registered email address: Every company must provide a monitored email address for regulatory contact.
For many directors, these requirements will be unfamiliar. Law firms should be prepared to support clients in understanding their obligations, especially where outdated or incomplete information may now draw attention from the Registrar.
Timeline of Key Changes
March 2024
Companies House began using its new powers to query, reject and remove inaccurate or fraudulent information. Companies were required to confirm lawful activities and provide a registered email address.
May 2024
Filing fees increased to strengthen enforcement activity.
March 2025
The Authorised Corporate Service Provider (ACSP) regime launched, allowing AML supervised firms including law practices to carry out identity verification.
November 2025
Identity verification became mandatory for all new directors and PSCs, with a 12 month transition for existing directors.
Spring 2026
Verification requirements extend to all individuals who file information at Companies House. Third party agents must be registered as ACSPs.
End of 2026
Full verification of all individuals on the register. New transparency rules for Limited Partnerships come into force.
From 2027
Mandatory software filing for accounts begins, along with expanded reporting obligations for small companies.
Practical Steps for Law Firms
To respond effectively to the reforms, firms should consider the following:
1. Review internal entities: Ensure any companies controlled or managed by the firm meet the new requirements.
2. Update clients proactively: Include Companies House reform updates in newsletters, onboarding materials and transactional checklists.
3. Evaluate ACSP registration: Determine whether ACSP status is necessary for your services or beneficial for supporting clients.
4. Train your teams: Ensure conveyancing, corporate and commercial staff understand how identity verification and expanded reporting requirements affect SPVs and company clients.
Failing to meet the new requirements can result in delays to transactions, rejected filings and increased regulatory risk.
A More Transparent and Secure Market
The core aim of the ECCT Act is to make the UK a more hostile environment for economic crime. By strengthening identity assurance and improving corporate data quality, the reforms reduce transactional risk, enhance due diligence and protect legitimate businesses.
For law firms, particularly those with conveyancing or corporate focused practices, accurate company information is essential. These reforms are not minor administrative updates. They represent a fundamental shift in how corporate accountability is defined and enforced.
The result is a stronger, more transparent marketplace that benefits clients, firms and the wider economy.