April 2025 marked the biggest shake-up to UK company law in over 20 years. Fuelled by the Economic Crime and Corporate Transparency Act 2023, the reforms aim to crack down on fraud, improve transparency, and modernise governance. The changes are sweeping: from mandatory identity checks for company directors and PSCs to strict rules on corporate service providers and new powers for Companies House to challenge inaccurate filings.
The scale is significant. According to Frame Kennedy, over 5 million directors and PSCs will need to verify their identity within a year. In addition, ACSPs must meet new anti-money-laundering and registration requirements ahead of a 2026 deadline. Failure to comply could mean rejected filings, heavy fines, or even criminal prosecution.
In this blog, we’ll break down the changes coming in 2025, when they take effect, and what directors, boards, and service providers need to do now to stay compliant.
The Economic Crime and Corporate Transparency Act 2023: Key Reforms
1. Companies House – Strengthened Powers in Practice
Earlier in 2025, Companies House gained new authority under the Economic Crime and Corporate Transparency Act 2023 to query, reject, or remove inaccurate information from the companies register. Over the next few months, these powers will be applied more actively as the organisation moves from passive record-keeper to proactive regulator.
Between now and the end of the year, companies can expect:
- Stricter address checks: every registered office will need to meet the “appropriate address” standard or risk being changed to a default address.
- Increased data scrutiny: cross-checking with other government databases will become routine.
- Faster intervention: suspicious incorporations or amendments may be stopped before they go live on the register.
Businesses that have not reviewed their filings for accuracy should do so now to avoid delays or formal queries once enforcement intensifies.
2. Identity Verification Regime – Mandatory Phase Approaching
One of the most significant changes still ahead is the mandatory identity verification requirement for company directors, People with Significant Control (PSCs), and anyone submitting filings.
From Autumn 2025, all new appointments must be verified before their details appear on the public register. Those already in post will have 12 months from the start date to complete verification. Without it, individuals will be legally barred from acting in their role, and filings from unverified persons may be rejected.
The government is urging companies to prepare early to avoid a last-minute surge in verification requests. For larger organisations with multiple directors and PSCs, starting the process as soon as the system opens will be essential to maintain compliance and prevent operational disruption.
3. Authorised Corporate Service Providers – New Filing Rules Ahead
From Spring 2026, only Authorised Corporate Service Providers (ACSPs) will be permitted to file documents or carry out identity checks on behalf of clients. This will mark a major shift for accountants, company formation agents, law firms, and other intermediaries who currently handle corporate filings.
To qualify, an ACSP must:
- Register with Companies House as an authorised provider.
- Be supervised for anti-money-laundering (AML) purposes.
- Use approved methods to verify the identity of directors, PSCs, and other relevant parties.
While the 2026 deadline may seem distant, applications to become an ACSP are expected to open in late 2025. Firms that delay could face a bottleneck in approvals, leaving them unable to act for clients when the rules come into force.
For companies that rely on intermediaries, it will be important to confirm that their chosen service provider is planning to register and will be compliant well before the transition date.
4. Suppression of Personal Information – Privacy Protections Expanding
From late 2025 into early 2026, individuals linked to a company will have new rights to remove certain personal details from the public register. This will apply not only to new filings but also to historical documents already held by Companies House.
Information eligible for suppression will include:
- Residential addresses where these appear in public filings.
- Signatures from past documents.
- Dates of birth shown in full instead of the partial format currently used.
The expanded rules aim to reduce identity theft risks and address growing concerns over personal data misuse. Applications will need to be made directly to Companies House, with a process for verifying eligibility before information is removed.
Directors, PSCs, and former officers who are concerned about their personal data being accessible online should prepare to act promptly once the new suppression routes open.
5. Ban on Corporate Directors – Final Stage Approaching
By late 2025, the UK will implement a long-planned ban on corporate bodies acting as company directors. Only natural persons will be permitted to hold directorships, with limited exemptions for certain regulated entities.
For companies that currently have corporate directors in place, a transition period will allow time to appoint natural person replacements. Once the ban is fully in force, any company still using a corporate director will be in breach of the law, potentially facing fines or further enforcement action.
Overseas companies will also be prevented from acting as corporate directors of UK companies, closing a loophole often used to obscure beneficial ownership.
Businesses should review their board structure now, identify any corporate directors, and prepare succession plans to ensure compliance before the final deadline is set.
Additional Changes in UK Company Law in 2025
1. Directors’ Duties Bill – Broader Responsibilities on the Horizon
The Company Directors Duties Bill, scheduled for its second reading in July 2025, is expected to widen the statutory duties of directors. If passed, it will require boards to formally consider factors beyond shareholder value, such as employee welfare, environmental impact, and long-term sustainability, when making decisions.
While the Bill’s final wording is still under debate, its direction suggests a stronger legal basis for stakeholder-focused governance. Directors may need to adapt board agendas, decision-making processes, and reporting to demonstrate compliance if the Bill becomes law later this year.
2. Virtual and Hybrid AGMs – Legal Clarity Expected
Currently, the law allows hybrid meetings but is less clear on fully virtual AGMs. New legislation anticipated in late 2025 aims to formalise the ability for companies to hold shareholder meetings entirely online, removing ambiguity left over from the pandemic-era emergency measures.
For companies with widely dispersed shareholders, this could reduce costs and increase participation. However, boards will need to ensure secure technology is in place to maintain meeting integrity, voting accuracy, and member engagement once the law is enacted.
3. Cyber Security and Resilience Bill – Strengthening Digital Defences
The Cyber Security and Resilience Bill is expected to progress in late 2025, introducing tougher requirements for businesses operating in sectors deemed critical to the UK’s digital infrastructure. The legislation will likely mandate incident reporting, independent security audits, and adoption of updated security standards such as passwordless authentication.
The Bill will also grant regulators stronger enforcement powers, including the ability to impose higher penalties for breaches. Even companies outside the designated “critical” sectors may feel indirect pressure, as supply chain partners begin demanding higher cyber assurance from contractors and service providers.
4. Small Business Filing Reform – Under Review but Still Possible
Plans to require micro and small companies to file full profit and loss accounts in a standardised digital format were originally scheduled for April 2027. However, following criticism about the burden on smaller firms, the government is reviewing the scope and timing of these changes.
An updated proposal is expected by early 2026, which means companies should not disregard the possibility of expanded filing obligations. Accountants and business owners would be wise to follow developments closely and prepare for more detailed financial disclosures in the near future.
How to Prepare for the Upcoming Changes in UK Company Law
The reforms coming into force over the next 12–18 months will impact every company in the UK. Directors, PSCs, boards, corporate service providers, and even micro-business owners will need to adapt their processes to meet the new standards.
For most, preparation will mean:
- Complete identity verification promptly once the mandatory system launches in autumn 2025.
- Review and correct any inaccuracies in Companies House filings.
- Confirm your chosen intermediary will be registered as an ACSP before the spring 2026 deadline.
- Adjust directorship structures in advance of the corporate director ban.
- Stay informed on possible changes to AGM formats and directors’ duties.
- Monitor small business filing reform updates and prepare for more detailed disclosures if required.
The sooner these steps are taken, the smoother the transition will be when the new rules arrive. For those planning to establish a new entity in the UK, using specialist company formation services can simplify registration and ensure compliance with the upcoming requirements.
Conclusion
The final months of 2025 will usher in some of the most significant changes to UK company law in a generation. These reforms will reshape the way companies are formed, managed, and held accountable. With deadlines approaching for identity verification, restrictions on corporate directors, and new requirements for service providers, the time to prepare is now.
Businesses that act early will not only avoid disruption and potential penalties but will also position themselves to operate with greater transparency and credibility. Whether you are a sole director or part of a large corporate board, the key is to stay informed, plan ahead, and embed compliance into your day-to-day operations well before the new rules take effect.
FAQs
1. When will the mandatory identity verification requirement start?
The mandatory phase is expected to begin in autumn 2025. New directors and PSCs will need to verify before their details are published, and existing ones will have 12 months to comply.
2. Who will need to register as an Authorised Corporate Service Provider (ACSP)?
Any intermediary that files on behalf of clients, such as accountants or formation agents, will need to register and meet anti-money-laundering supervision requirements by spring 2026.
3. Can I remove my residential address from past Companies House filings?
Yes. From late 2025, you will be able to apply to suppress residential addresses, signatures, and full dates of birth from both new and historic records.
4. How will the ban on corporate directors work?
By late 2025, only natural persons will be allowed to act as company directors, with limited exemptions. Companies using corporate directors will need to replace them within the transition period.
5. Will the new rules affect small businesses and micro-companies?
Yes. While some changes, like identity verification, apply to all, the proposed expansion of filing requirements for small companies is under review and could still proceed in a revised form.
