Starting on November 18, 2025, Companies House will introduce significant changes under the Economic Crime and Corporate Transparency Act (ECCTA). The reforms are designed to strengthen the integrity of the UK’s corporate register by ensuring individuals who control companies are verified at the point of incorporation.
Under the new rules, directors, Persons with Significant Control (PSCs), and members of Limited Liability Partnerships (LLPs) or Limited Partners (LPs) must complete electronic identity verification before a company can be registered or before they assume their role. Verification can be carried out via the UK government website or via an Authorised Corporate Service Provider (ACSP). This requirement is designed to close loopholes that previously allowed anonymous — and potentially fraudulent — registrations, making it harder for bad actors to misuse business entities.
Company formation agents also face new obligations. To continue offering incorporation services, they need to register as ACSPs, which are subject to UK anti-money laundering (AML) supervision. And ACSPs need to retain identity verification records for seven years. Registration costs £55 and introduces a higher level of regulatory oversight for these intermediaries.
The UK has historically offered one of the simplest and cheapest company formation processes in the world, which benefits legitimate businesses but can also attract criminals. Fraud accounts for around 40% of all crimes in England and Wales, and Europol estimates that 86% of criminal networks in the EU exploit corporate vehicles.
Mass registration of shell companies has been linked to money laundering, sanctions evasion, and other financial crimes. By requiring identity verification for PSCs and directors, Companies House is introducing a layer of verification to make those exercising control more traceable and accountable, while not impeding incorporation.
Businesses are preparing for several changes.
With geopolitical risks and financial crime on the rise, dependable registry data and verified ownership are essential for onboarding, customer and supplier due diligence, and ongoing risk management. These reforms represent a shift toward greater transparency and accountability in UK corporate governance.
Moody’s solutions integrate global entity and ownership data, supporting organizations to answer the critical question: “Who am I doing business with?” Leveraging risk-relevant data can assist businesses in making more informed decisions, managing compliance activity, and helping control their exposure to financial crime risks.
For more information, please get in touch with the team any time—we would love to hear from you.
*This content is for informational purposes only and reflects our understanding of the subject matter as of the date of publication. It does not constitute legal, regulatory, or compliance advice.