What is the ECCTA 2023?
Summarising the Economic Crime and Corporate Transparency Act

By: Nikoo Ordodary, Director, Business Law

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) represents a seismic shift in the way companies are formed in the UK. Driven by the need to crack down on fraud and money laundering, the Act introduces critical safeguards to ensure transparency and accuracy of data. But for law firms facilitating company formations, this new era comes with added complexity—and a substantial administrative burden.

While the Act’s goals are laudable, its implementation forces law firms to register as Authorised Corporate Service Providers (ACSPs), fundamentally altering the landscape of their compliance obligations. For many, this creates a challenge: how do you maintain efficiency, uphold your client commitments, and navigate these changes without overextending your resources?

For law firms, the move to become an ACSP is more than just a tick-box exercise. It requires time, resources, and meticulous oversight:

  • Mandatory registration with Companies House brings increased scrutiny and ongoing compliance responsibilities.
  • Additional processes for each company formation, including secure client verification procedures, add layers of complexity to already stringent workflows.
  • Increased regulatory liability, should a formation go wrong, puts firms at risk of reputational and financial damage.

An ACSP is an entity, supervised for anti-money laundering supervision, which is required to ensure the appropriate checks have been carried out on all company subscribers prior to filing.

These checks include identity verification to a standard published by Companies House. This would require already-busy law firms to stay abreast of updates to Companies House, and to potentially engage the services of an identity verification technology provider, meaning further research and expense.

Companies House has announced that from Tuesday 18 November 2025, legal requirements for directors and people with significant control (PSCs) of companies to verify their identities will begin.

From 18 November 2025:

  • new directors will need to verify their identity to incorporate a company or be appointed to an existing company
  • existing directors will need to confirm they have verified their identity at the same time as they file their next annual confirmation statement, during a 12-month transition period
  • existing PSCs will need to verify their identity in line with an appointed day within 12 months of the commencement of mandatory identity verification on 18 November

For firms already balancing their clients’ legal needs with existing compliance duties, this represents a significant challenge—one that many might not have anticipated when offering company formation and CoSec services.

Dye & Durham understands that law firms are experts in the law, not in navigating the evolving technicalities of company formation regulations. That’s why we offer a complete solution to alleviate the burden and streamline the process.

As an experienced partner in company formations, Dye & Durham is uniquely positioned to:

  • Register as an ACSP on your behalf, handling all formation-related compliance so you don’t have to.
  • Ensure full adherence to the Economic Crime and Corporate Transparency Act, providing peace of mind and protecting your firm from regulatory risks.
  • Utilise our own Government-certified identity verification technology, ensuring all compliance checks are completed in accordance with Companies House requirements,
  • Allow you to focus on what you do best—delivering exceptional legal advice and services to your clients.

The Act is in phased implementation, which leaves little time for firms to adapt. Waiting until the last minute increases the risk of disruption, delays, and reputational harm. Partnering with Dye & Durham today ensures a seamless transition, making compliance not only manageable but effortless.

By outsourcing your company formation needs, you’ll avoid costly internal restructuring and protect your firm from unnecessary risks—all while providing your clients with a smooth, efficient service.

The ECCTA 2023 may bring new challenges, but it also offers an opportunity to future-proof your firm by aligning with trusted partners who specialise in compliance. The reinforcement of ECCTA 2023 also enhances accuracy and reliability of data provided to Companies House. Dye & Durham is here to shoulder the burden, enabling you to navigate these changes with confidence.

Don’t let the burden of becoming an ACSP hold you back. Contact us today to discover how we can transform your company formation processes and keep your focus on what matters most: serving your clients.

 


 

About Nikoo Ordodary

Nikoo is the Director of Business Law UK, overseeing Corporate Due Diligence Products, Formations, and Company Secretarial (CoSec) services. With. With 10+ years of international experience across private and non-profit sectors, she brings deep expertise in legal operations, governance, and product development.

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