Economic Crime & Corporate Transparency Act 2023 – Upcoming Changes to Company Incorporation Process Including Identity Verification Requirements

The process to incorporate a company is being made more prescriptive under the Economic Crime & Corporate Transparency Act 2023 (ECCTA). Incorporation will require the provision of several additional confirmations, including confirmation that the company is being formed for a lawful purpose; the initial subscribers, proposed directors and the company’s PSCs are not disqualified from acting as directors; and that the proposed directors have completed identity verification (IDV) prior to incorporation. There is also the option to confirm the completion of PSC IDV prior to incorporation. However, IDV of PSCs may also be completed within the 14-day period following incorporation.

The ECCTA is a landmark legislation designed to give Companies House new and enhanced powers to help disrupt economic crime and the IDV process is a key component of this. IDV currently operates on a voluntary basis, but mandatory IDV is now confirmed as coming into force from 18th November 2025.

Considering this, the company formation checklist and template board minute to record the proceedings of the first meeting of the board of directors have been updated with additional requirements.

These include confirmation that:

• the company’s registered office is appropriate;
• the company has an appropriate email address;
• the company has been formed for a lawful purpose;
• none of the subscribers, directors or PSCs are disqualified under the relevant directors’ disqualification legislation;
• each director has had their identity verified and Companies House has been provided with the personal unique identifying code for each director as part of the registration filing; and
• each PSC has had (or will have) their identity verified.

The company formation checklist has also been updated with additional requirements that will come into force throughout 2026/27, including changes to accounts filings and statutory records.

These updated templates will be useful for a company director, secretary or administrator who has recently incorporated a new stand-alone company or a company within a group.