Companies House steps up ECCTA enforcement
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Legal updates
3 mins read
Updated on11 July 2025
Companies House steps up ECCTA enforcement
Companies House is already using new powers introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) to crack down on fraud and improve the integrity of the corporate register. A new government report, published on 30 June 2025, confirms these powers are having a real-world impact, with tens of thousands of companies affected in just the first year.
The changes mark a significant shift in how Companies House monitors and enforces compliance. Businesses now face stricter requirements around transparency, accuracy and identity verification, and those that fall short risk penalties, strike-off or further scrutiny.
While full ECCTA implementation is expected to continue into 2026 and beyond, enforcement is already well underway. Here’s what you need to know, and how to ensure your company stays compliant.
What’s happening now? Companies House enforcement in action
Since the initial rollout, Companies House has significantly increased its powers and is now using them to drive compliance across the UK corporate landscape. Key actions include:
* Crackdown on inappropriate registered office addresses
Companies can no longer use PO boxes as a registered office. Companies House has changed the addresses of more than 82,000 companies to a default address where the original was found to be inappropriate or used without consent. Companies that fail to update their details risk being struck off the register.
* Major data cleansing underway
Companies House has removed false or misleading information affecting more than 100,000 companies, including errors in registered office addresses, officer and PSC (Person with Significant Control) details, incorporation documents and other key company filings.
* Suspicious and fraudulent filings rejected
Over 10,000 suspicious company applications have been blocked before approval, including those using false addresses or fabricated identities.
* Tackling identity misuse
In partnership with data providers, Companies House has identified companies listing deceased individuals, prompting corrections and in some cases further investigation into potential fraud.
* New financial penalties for non-compliance
A financial penalty system has been piloted to target serious repeat offenders and late filers. This is expected to expand significantly going forward.
What’s coming next? Key ECCTA reforms - some already in effect
Companies House has already begun rolling out several ECCTA reforms, with more changes on the way. Here is what businesses need to know:
* Voluntary identity verification is now available
Directors and PSCs can already verify their identity using GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP). This allows companies to get ahead before identity checks become mandatory.
* ACSP registration is open
Solicitors, accountants and other trusted professionals can now register as ACSPs to carry out verification and submit filings on behalf of clients.
* Mandatory identity verification is coming
Identity verification will soon be required for all new directors and PSCs at the time of appointment or incorporation. There will be a transition period to bring existing records in line.
* Filing restrictions will increase
Soon, only verified individuals or ACSPs will be allowed to file documents at Companies House. Unverified individuals may face blocked filings or additional scrutiny.
* Full compliance required by late 2026
All directors, PSCs and presenters will be expected to have completed verification by the end of 2026. Failure to comply may lead to rejected filings, penalties or disqualification.
These reforms are designed to reduce fraud, prevent misuse of the corporate register and make UK businesses more transparent. But they also create new obligations for business owners and company officers to manage carefully.
What this means for your business
If you run a startup, scaleup or SME, it is important to:
* Verify the identity of all directors and PSCs using approved routes
* Ensure your company records are accurate and up to date
* Act now to prevent future delays or rejections when filing documents
* Prepare for stricter access controls and enforcement action if obligations are missed
The changes are significant, and many are already being enforced. Acting early will give your business time to adapt and avoid disruption.
How we can help
At Harper James, we understand that navigating regulatory change can be complex, especially as your business grows. We can support you with all aspects of the ECCTA compliance and identity verification, helping you review and update officer and PSC details, advise on GOV.UK One Login verification and ACSP registration, manage statutory registers and company filings, and respond to Companies House notices.
To access legal support from just£159 per hour arrange your no-obligation consultation today. We aim to respond to all messages received within 24 hours.
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