Blog

As of July 2025, Companies House in the UK has introduced a phased identity verification process for directors and Persons with Significant Control (PSCs) under the Economic Crime and Corporate Transparency Act 2023.

These changes represent the most substantial reform to Companies House operations in decades, aimed at combating economic crime and enhancing corporate transparency.

Who must verify

The following individuals are required to verify their identity:

• Company directors (including non-UK residents)
• Persons with Significant Control (PSCs), who are individuals who hold more than 25% of shares or voting rights in a company, or who otherwise exercise significant influence or control over the company
• Members of Limited Liability Partnerships (LLPs)
• Individuals filing documents on behalf of a company (e.g., company secretaries)
• Authorised Corporate Service Providers (ACSPs)

Verification is mandatory regardless of nationality or residence. The most significant milestone is late 2025, when identity verification becomes mandatory for all new company incorporations and director appointments From this point forward, no new company can be formed, and no new director can be appointed, without first completing the identity verification process.

Find out more on when you need to verify and an overall summary on the gov.uk website.

Step-by-step to identify

1. Gather Required Documents

Depending on your chosen method, acceptable documents include:

• Biometric passport (UK or international)
• UK photocard driving licence
• UK biometric residence permit (BRP) or card (BRC)
• UK Frontier Worker permit
• Alternative documents (e.g., bank statements) may be accepted, especially for those without photo ID.

2. Choose your verification method

You can verify your identity through one of the following methods:

• Online via GOV.UK One Login
• In person at a UK Post Office
• Through an Authorised Corporate Service Provider (ACSP) which may involve a fee

3. Receive your personal code

On successful verification, individuals receive a unique Companies House personal code that serves as their digital identity within the system. This code is personal to the individual, not to any specific company or role, and remains valid across multiple directorships or PSC positions.

This code is essential for:

• Filing confirmation statements
• Registering new appointments
• Linking your identity to company roles

Consequences of non-compliance

The legislation includes significant penalties for those who fail to comply. Directors who continue to act in their roles without completing identity verification after it becomes mandatory will be committing an offence and could face disqualification. Both the individual directors and their companies may be subject to financial penalties.

Similarly, PSCs who fail to verify their identities when required may be committing an offence under the new legislation. The enforcement mechanisms are designed to ensure widespread compliance while providing sufficient time for individuals to complete the verification process.

From a practical standpoint, non-compliance will severely limit business operations. Companies will be unable to file confirmation statements, make new appointments, or complete other essential filings if their directors and PSCs have not verified their identities. This creates a strong incentive for early compliance to avoid operational disruptions.

Preparing for the Changes

Given the scope and timing of these requirements, businesses should begin preparing immediately.

• Directors and PSCs are strongly encouraged to complete voluntary verification as soon as possible, rather than waiting for the mandatory deadline. Early verification helps identify any potential issues with documentation or the verification process while there is still time to resolve them.
• Companies should review their current director and PSC registers to ensure all relevant individuals are aware of the requirements. This is particularly important for companies with non-executive directors or PSCs who may not be involved in day-to-day operations and might not be aware of the changes.

For businesses that rely on professional service providers for company filings, it is essential to confirm that these providers are registered as ACSPs or are in the process of becoming registered. Failure to use an authorised provider after the requirements come into effect could result in filing delays or rejections.

Conclusion

The new Companies House identification requirements represent a fundamental shift in UK corporate governance, prioritising transparency and accountability over the traditional ease of company formation. While the changes require significant effort from millions of directors and PSCs, they serve the crucial purpose of protecting the integrity of the UK’s corporate register and deterring economic crime.

Success in navigating these changes depends on early preparation, understanding the available verification options, and ensuring all relevant parties within an organisation are aware of their obligations.

By taking proactive steps now, businesses can ensure smooth compliance with these important new requirements while contributing to a more transparent and trustworthy corporate environment.