The UK has introduced new identity verification requirements for companies, meaning key people like Directors, shareholders and Persons with Significant Control (PSCs) must now prove their identity with Companies House. Effective from 18th November 2025, anyone becoming a company Director or PSC is legally required to verify their identity, providing greater assurance about who is running, owning or controlling companies in the UK. This reform is part of a drive to prevent fraud and increase transparency on the companies register. The Government notes that making register information more reliable will boost trust for honest businesses and help tackle economic crime. In practice, identity checks will make it much harder to set up companies using fake or stolen identities, and easier to expose disqualified directors or link criminal networks abusing company structures gov.uk.
Now the dust has settled, Courtney Stephenson, Associate Solicitor in Waldrons’ Corporate & Commercial team, takes a closer look at what these changes really mean. Courtney advises businesses across the Black Country, Birmingham and Worcestershire on corporate, commercial and employment matters, and has been guiding clients through how the new Companies House rules will shape their compliance responsibilities and future filings.
Why Identity Verification Is Now Mandatory
These identity verification rules were introduced under the Economic Crime and Corporate Transparency Act 2023 to deter illicit use of companies and improve the integrity of UK corporate data changestoukcompanylaw.campaign.gov.uk. Companies House is transforming from a passive registrar into an “active gatekeeper” of accurate information commonslibrary.parliament.uk. The goal is to ensure that those in control of companies are who they claim to be, thereby preventing fraudsters from abusing UK companies as fronts for crime. Government officials have described mandatory ID checks as a “turning point in protecting honest businesses and hard-working consumers from fraud”, which will boost confidence and investment by making it safer to trust the Companies House register. In short, the legal requirement to verify ID is designed to weed out bogus company actors and reinforce transparency in UK business.
Who Needs to Verify and When
Under the new law, the following individuals and entities must verify their identity with Companies House, according to official guidance:
- New directors and PSCs: If you are appointed as a Director of a UK company (or are added as a new PSC) after 18th November 2025, you must verify your identity as part of the incorporation or appointment process gov.uk. A company cannot be formed or updated with new Directors/PSCs unless those individuals have been verified.
- Existing company directors: Directors who were in place before the rules came into effect must confirm their verified status when filing the company’s next confirmation statement. This falls within a 12-month transition period, meaning each existing director’s verification is due by the time their company’s next confirmation statement is submitted in 2025–2026 gov.uk.
- People with Significant Control (PSCs): Individuals who hold significant ownership or control in a company (generally over 25% shares or voting rights) also need to verify their identity. For PSCs already on the register as of 18th November 2025, there is a specific 14-day window each year to submit a statement confirming they have verified their ID (along with their personal code, discussed below). The timing of this 14-day period depends on the situation: if the PSC is also a director of the company, the window starts immediately after the company’s confirmation statement date; if the PSC is not a director, the window begins on the first day of the PSC’s birth month each year.
- Members of LLPs: The new verification obligation isn’t limited to companies. Members of UK Limited Liability Partnerships (LLPs) are treated similarly to Directors and will need to verify their identities from the start of the new rules. For new LLP members, identity checks are required on appointment; existing LLP members have to verify by the time of the LLP’s next confirmation statement or equivalent deadline.
- Authorised Corporate Service Providers (ACSPs): These are the authorised agents (often accountants, solicitors or company formation agents) who file documents on behalf of companies. If you intend to act as an agent and register with Companies House as an ACSP, you must verify your identity as part of that registration. In other words, the accountants or lawyers who handle company filings for clients also need to go through ID verification themselves. In the future, businesses will only be able to file for clients if they are registered (and verified) as an authorised agent gov.uk.
Failure to comply with the verification requirements by the due dates is an offence and can lead to serious consequences. Companies House has made clear that non-compliance could result in financial penalties, Director disqualification referrals or even prosecution gov.uk. Moreover, unverified individuals will eventually be barred from making filings or being appointed to new company roles, effectively freezing a non-compliant company’s ability to operate. These measures put a firm onus on company officers to complete the ID checks on time.
How the Verification Process Works (Personal Codes and Filing)
Companies House has implemented a simple, secure process for verification, which can be done in one of two ways gov.uk:
- Direct verification via GOV.UK One Login: Individuals can use the government’s online portal to verify their identity using a passport, driving licence or other photo ID. The online system is free and typically takes only a few minutes, leveraging secure document checks or security questions gov.uk. You will need a GOV.UK One Login account (which involves an email address and some personal details) to complete this process.
- Verification through an Authorised Agent (ACSP): As an alternative, a company officer can ask an authorised corporate service provider, such as an accountant, solicitor or chartered secretary registered with Companies House to verify their identity on their behalf. The agent will check your identity documents under anti–money laundering standards and then confirm your ID status with Companies House. This route is useful for those who may not have a UK passport/driving licence or who prefer professional assistance. (Do note that the agent themselves must have completed their own verification to act in this capacity, as mentioned above.)
In most cases, an individual only needs to go through identity verification once. After successfully verifying, Companies House issues a unique personal identification code to that person. This personal code is essentially proof of your verified status. Crucially, you must use this code in company filings to link your verified identity to each role you hold.
For example, a Director will receive a personal code upon verification and then must provide a statement of confirmation with that code in the company’s next confirmation statement filing. If the same person is a Director of multiple companies, they will use their code to confirm identity for each directorship (one company at a time, as each confirmation statement comes due). Likewise, a PSC who has verified will need to submit their personal code via the “Provide identity verification details for a PSC” service on the Companies House website within the required 14-day window discussed earlier. A person serving in dual roles (e.g. both a Director and a PSC of the same company) must submit their code for each role separately, once in the confirmation statement for their director role, and again via the PSC verification service for their PSC role.
It’s important to keep track of these deadlines. Companies House is contacting companies with information on each officer’s verification due date, and individuals can also log in to the Companies House register to check the status for all their roles. To stay compliant, companies should ensure that every current director and PSC completes the one-time ID check well before their next filing deadline and that new appointees verify promptly upon taking a role. By doing so, businesses will avoid disruption since an unverified director, for instance, cannot be officially added to the register and escape any penalties for late verification.
“This new identity verification regime for companies is a fundamental shift in corporate compliance,” says Courtney. “While it adds an extra administrative step for honest businesses, it significantly enhances transparency and trust in company information. I strongly encourage companies to seek professional legal advice to ensure they understand and meet these new obligations in good time.”
Future Expansion of Verification Requirements
The initial phase of mandatory identity verification focuses on directors, PSCs, LLP members, and registered agents, but further expansions are on the horizon. Companies House has indicated that other key company individuals, such as company secretaries, will also be required to verify their identity at a later date. The law empowers the Government to roll out identity checks to additional roles and entity types in due course. It is expected that people who file information at Companies House (for example, presenters of documents) will need to verify their ID, as well as parties involved in more complex structures like limited partnerships, corporate directors, corporate LLP members, and officers of corporate PSCs. In essence, any person incorporating, running, controlling or owning a UK company or similar entity will eventually be brought into this verification regime.
Given the ongoing reforms, it’s wise for companies to cultivate good compliance practices now, for instance, keeping accurate records of all officers and their status so that expanding the verification to more positions will be a smoother process when it comes into force. There is more information surrounding these new rules on the Gov website and also Companies House using the links within this article but if you do have any questions about what these new rules mean to you, Courtney Stephenson is here to assist.
