The Economic Crime and Corporate Transparency Act 2023 (ECCT Act) is reshaping the UK’s corporate landscape. It represents the most significant overhaul of the company registration regime since 1844, when Companies House was first established. The reforms mark a decisive shift towards greater transparency, accountability and the prevention of economic crime.
For many law firms, particularly those advising company directors or owner-managed businesses, these changes demand new awareness, new systems and new responsibilities.
A New Role for Companies House
The most striking change is the transformation of Companies House from a passive registrar into an active regulator. Its role is no longer simply to record information but to ensure that it is accurate, lawful and reliable.
Since March 2024, the Registrar has gained powers to query and reject suspicious filings, remove fraudulent entries and share intelligence with law enforcement. The register can no longer be treated as a neutral database. It is becoming a gatekeeper for corporate legitimacy.
Why It Matters for Law Firms
These changes reach directly into the client base of most legal practices.
Many property clients are company directors. Transactions often involve special-purpose vehicles (SPVs) or development companies. Law firms regularly act as formation agents or handle filings on behalf of clients. Each of these scenarios will now be affected by tighter verification and reporting standards.
If your clients are company directors, or if your firm ever files company information, these reforms matter to you.
Identity Verification: The Core of the Reform
The centrepiece of the ECCT Act is identity verification. By late 2025, every new director and person with significant control (PSC) must verify their identity at the point of incorporation. For existing companies, verification will be tied to the annual confirmation statement during a 12-month transition period.
This is a major operational exercise affecting more than seven million people. Verification will be digital and can be completed either directly through Companies House or via an Authorised Corporate Service Provider (ACSP).
ACSPs may include law firms, accountants and other professional advisers who are already supervised for AML compliance. They can verify client identities and submit the results to Companies House.
For firms that become ACSPs, this presents both an opportunity and a responsibility. It allows them to add value for clients but also requires robust AML systems, strong governance controls and detailed audit trails. It also brings additional regulatory risk.
Filings, Fees and Transparency
The reforms do not stop at verification. Over the next two years there will be far-reaching changes to how companies report information. Key developments include:
• Digital-only filing of accounts: All accounts must be submitted via approved software.
• Expanded financial disclosure: Even small and micro companies will need to file profit-and-loss accounts and a directors’ report.
• Restrictions on corporate directors: Only UK-registered entities with natural-person directors, whose identities have been verified, will be permitted.
• Registered email addresses: Every company must maintain a valid, monitored email address for regulatory contact.
Law firms should be prepared to help directors understand their obligations, particularly where outdated or incomplete information might now attract scrutiny.
Timeline: What Happens When
March 2024 Companies House began using new powers to query, reject and remove inaccurate or fraudulent information, and required companies to confirm lawful activities and provide a registered email address.
May 2024 Filing fees increased to fund stronger enforcement.
March 2025 Launch of the Authorised Corporate Service Provider (ACSP) regime, allowing AML supervised firms, including law firms, to verify client identities.
November 2025 On 18 November, identity verification becomes mandatory for all new directors and PSCs, with a 12-month transition for existing directors.
Spring 2026 Verification requirements extend to all who file company information, and third-party agents must be registered as ACSPs.
End 2026 All individuals on the register must have verified identities, with new transparency rules for Limited Partnerships.
From 2027 Mandatory software filing for accounts and enhanced reporting for small companies.
Practical Action
For law firms, these reforms present both a risk and an opportunity. Here are some steps you should consider taking if your firm is affected by the changes:
1. Review your own filings: Ensure that any entities your firm controls meet the new standards.
2. Inform your clients early: Build Companies House reform updates into client newsletters or onboarding packs where appropriate.
3. Consider ACSP registration: Ensure that you are registered if your services are caught by the regime or if you want to offer a verification service.
4. Train your teams: Ensure that conveyancing and commercial staff understand how verification affects SPVs and company clients.
If the new requirements aren’t met, this could lead to delays in advancing the legal services you are providing or cause the firm regulatory problems.
A stronger, more transparent market
The ECCT Act’s underlying goal is to make the UK a harder place for criminals to hide behind opaque companies. Accurate corporate data reduces transaction risk, improves due diligence and protects legitimate businesses from being linked to fraudulent entities. For conveyancing-driven practices, that is especially valuable. The Companies House reforms are not just administrative updates. They represent a fundamental redefinition of corporate accountability and that’s got to be a good thing