Here’s something wild: if you’re a company director, startup founder, investor, or even just listed on a UK company registry — the government is about to force you to prove you are who you say you are. And if you don’t? You could be blocked from forming or running a company at all.
This is all thanks to a new law that’s flying under the radar: the Economic Crime and Corporate Transparency Act (ECCTA). It’s not flashy, but it’s one of the most significant shake-ups in UK business law in over a century.
We’re talking about mandatory identity verification for every company director, every person with significant control (PSC), and every LLP member — past and present. According to Companies House, this will affect over 5 million people.
No ID = No power. No access. No company filings. And potentially, no business.
If you haven’t read about it yet, you should. Start here:
👉 Big shake-up in company law: ECCTA identity verification – 5M people affected
So why does this matter?
Because this isn’t just about catching fraudsters (though that’s the intent). It’s about shifting the default state of UK business from “trust first” to “verify everything.”
In practice, that means:
- Slower incorporations
- More regulatory overhead for founders
- New admin costs for accountants and legal teams
- Extra steps for investors and board members
- And a big compliance risk for those who aren’t paying attention
This will especially hit small business owners and solo founders — the ones least equipped to deal with extra bureaucracy. And while the goal is noble (transparency, anti-fraud, etc.), there’s no question it adds friction to a system that used to pride itself on being light-touch and fast.
It’s the price of cleaning up the corporate landscape. But don’t mistake this for background noise — this is the start of a bigger shift in how the UK handles corporate identity, data, and trust.
Here’s where Authorised Corporate Service Providers (ACSPs) come in. These are regulated intermediaries—usually accountants, law firms, or company formation agents—who are approved to handle identity verification on your behalf. Instead of navigating the Companies House process yourself, you can go through an ACSP who already has systems in place to collect, validate, and submit your documents securely. It saves time, reduces errors, and ensures you’re compliant from day one.
It’s the price of cleaning up the corporate landscape. But don’t mistake this for background noise — this is the start of a bigger shift in how the UK handles corporate identity, data, and trust.
TL;DR
- If you’re a company director, LLP member or PSC, you must verify your identity.
- If you don’t, you’re legally blocked from acting inside your Company, for example you may not be able to file your confirmation statement.
- If you wait too long, your company could face penalties or be struck off.
- And if you think this won’t apply to you — it will.
The smart move? Get ahead of it.
📎 Read the full breakdown here and then talk to your legal or compliance person.
Because “I didn’t know” isn’t going to fly in 2025.