UK Companies house is introducing a new filing system for agents and third-party filers to enhance transparency and accuracy in corporate records. Starting in February 2025, third parties such as accountants who submit accounts and other information on behalf of clients to Companies House must register their business as an Authorised Corporate Service Provider (ACSP). This initiative, part of the Economic Crime and Corporate Transparency Act (2023), aims to combat fraud, improve data accuracy, and strengthen identity verification.
If you’re an accountant, corporate service provider, or anyone filing documents with Companies House on behalf of clients, here’s what you need to know.
Why UK Companies House Is Introducing Identity Verification
Identity verification is an important part of the Economic Crime and Corporate Transparency Act.
- According to Companies House, requiring third-party agents to register their business and verify their identity will help deter fraud and further enhance transparency for those who provide information to the public register.
- They will also be able to quickly identify when an agent may not be acting with a lawful purpose and will be able to take action. This will help them effectively protect lawful businesses and the public.
Companies House information has been widely criticised for a variety of failings, including incorrect names, addresses, and financial information, with the agency lacking the capacity to verify the accuracy of all information submitted to it.
Key Changes to the Companies House Filing System
Introduction of Authorised Corporate Service Providers (ACSPs)
From 25 February 2025, all third-party providers will need to register their business as an Authorised Corporate Service Provider (ACSP) before they can submit information and carry out identity verification checks on their clients. Authorised Corporate Service Providers (ACSPs) are individuals or organizations that undertake anti-money laundering (AML)-supervised activity, such as:
- Company formation agents
- Solicitors
- Accountants
- Chartered secretaries and governance professionals
ACSPs will also be known as Companies House-authorized agents.
If you’re a software provider filing information on behalf of a company or third-party provider, you’ll also need to register as an ACSP. You’re now included in the new legislation because you’re responsible for filing information on the register through your software service.
Companies House to move to new One Login system
- From 25 February, registration for ACSPs will be available through gov.uk One Login, the government’s new single sign-in service, which will eventually replace Government Gateway accounts as a single identity check and login system to access all central government services.
- From 25 March 2025, individuals will be able to voluntarily verify their identity, either directly with Companies House through gov.uk One Login or through an ACSP.
- In future, probably Autumn 2025, identity verification will become compulsory for new directors and people with significant control (PSCs).
- From the date to be announced in spring 2026, anyone filing a document with Companies House will either have to be an ACSP or an individual who has had their ID verified.
ACSP Registration Process
If you hold a senior role within the business, such as a director, you’ll need to complete a registration process to register your business as an ACSP.
- To register as an ACSP, firms will be asked to complete an identity verification process as part of the application and provide information about their business.
- To register as an ACSP, firms will be asked to complete an identity verification process as part of the application and provide information about their business.
- As part of the registration process, ACSPs will need to verify their identity, prove they are supervised by an anti-money laundering body, and pay a £55 registration fee.
- The person registering the business as an ACSP can add other people who work for the business to the authorized agent account once it is registered and approved.
- Once registered, the ACSP will be issued with a new digital account and unique identity number. This will allow them to file information and complete identity verification for clients, whether they use the Companies House service directly or a third-party filing system.
What This Means for Accountants and Corporate Service Providers
For accountants and third-party filers transitioning to the Authorised Corporate Service Provider (ACSP) system, the preparation process will be multifaceted, focusing on compliance. Here’s a breakdown of the key preparations they can make:
1. Understanding the New Regulatory Framework
- Study the ACSP Licensing Requirements: Accountants and third-party filers must familiarize themselves with the ACSP licensing process and study new guidelines on corporate governance, reporting, and compliance.
- Review Tax and Financial Reporting Changes: New systems may alter how tax filings, financial statements, or regulatory reports are submitted. Accountants should stay updated on any new forms, formats, or deadlines imposed by the ACSP system.
2. Training and Knowledge Acquisition
Accountants, third-party filers, and their teams will need to undergo training on the specifics of the ACSP system. This includes understanding the legal and regulatory landscape, how to use new systems or software, and how to process client data securely.
3. System and Technology Setup
Transitioning to the ACSP system may require upgrading accounting and filing software. Accountants and third-party filers should update their existing systems to ensure they are compatible with the new ACSP infrastructure.
4. Client Communication and Education
- Accountants and third-party filers will need to communicate the changes in the ACSP system to their clients. This includes informing them about the new filing process, compliance requirements, or any impacts on their corporate service packages.
- Educate Clients on New Requirements: Clients may need guidance on how their obligations might change, such as filing deadlines, documentation requirements, and their role in maintaining compliance within the ACSP framework. Accountants can provide resources or offer advisory services to help clients adapt.
Conclusion
The ACSP system framework for Companies House and corporate professionals marks an important milestone. Early internal preparation on their part will assist in complying and ensuring smooth adoption, contributing to a better corporate world that is legal, transparent, and safe.
