Are You Ready for the New Companies House ID Checks?
Summary
This blog post provides a comprehensive guide to the new identity verification requirements being introduced by Companies House, starting 18 November 2025. Mandated by the Economic Crime and Corporate Transparency Act 2023, these changes require all company directors and Persons with Significant Control (PSCs) in the UK to verify their identity. The article details the purpose of these changes, which is to increase transparency and combat economic crime. It outlines key deadlines, including the immediate requirement for new directors from 18 November 2025, and a 12-month transition period for existing directors and PSCs. Two primary verification methods are explained: using GOV.UK One Login or an Authorised Corporate Service Provider (ACSP). The post also discusses the serious consequences of non-compliance, such as fines and the inability to file company documents, while highlighting the benefits of a more trustworthy company register. Finally, it offers practical advice for businesses to prepare, stressing the importance of early action.
Running a business comes with its fair share of paperwork and compliance hurdles. It often feels like just as you get to grips with one set of regulations, another comes along. Have you ever worried about the accuracy of the information on the Companies House register? Or wondered if the people you're doing business with are truly who they say they are? These are valid concerns that strike at the heart of business confidence. Now, a significant change is on the horizon, designed to address these very issues and strengthen the UK's business environment for everyone.
Starting this November, Companies House is rolling out a mandatory identity verification process for all company directors and Persons with Significant Control (PSCs). This isn't just another administrative task to tick off a list. It's a fundamental shift aimed at enhancing transparency, tackling economic crime, and building a more reliable foundation for UK commerce.
For many, this news might bring a sense of uncertainty. What does this mean for you? How much time will it take? What happens if you don't comply? This guide is here to walk you through everything you need to know. We’ll break down the new requirements, explain the key dates, show you exactly how to get verified, and offer practical steps to ensure you and your business are prepared well ahead of time.
An Overview of the New Identity Verification Requirements
The introduction of mandatory identity verification is one of the most significant updates to UK company law in years, stemming from the Economic Crime and Corporate Transparency Act 2023. The core purpose is to make it much harder for individuals to use companies for fraudulent or illegal activities. By ensuring that every director and PSC has proven their identity, Companies House aims to create a more accurate and trustworthy public register.
Think about it: a reliable register gives you greater confidence when dealing with other companies, whether they are suppliers, customers, or potential partners. It protects your own business from being associated with fraudulent entities and boosts the UK's reputation as a safe and transparent place to conduct business. Research from YouGov shows that this change is widely supported, with 81% of business leaders backing the implementation of the new identity verification process.
So, who does this affect?
Company Directors: Anyone appointed as a director of a UK-registered company.
Persons with Significant Control (PSCs): Individuals who ultimately own or control the company.
Members of Limited Liability Partnerships (LLPs): These individuals will also fall under the new requirements.
In the future, these rules will also extend to people who file documents on behalf of companies and key figures in limited partnerships and corporate directorships. For now, the focus is squarely on directors and PSCs. The good news is that for most people, this is a one-off process that takes only a few minutes to complete online.
Key Dates and Deadlines: A Timeline for Compliance
Understanding the timeline is crucial to avoiding any last-minute rush. Companies House is phasing in the requirements over a 12-month period to help businesses adapt smoothly. Here are the dates you need to circle in your calendar.
From 18 November 2025: The Rollout Begins
This is the official start date for mandatory identity verification. From this day forward:
New Directors: Anyone being appointed as a director to a new or existing company must verify their identity before their appointment can be registered. If you're incorporating a new company, you'll need to complete this step as part of the setup process.
New PSCs: Similarly, new PSCs will need to verify their identity upon their registration.
The 12-Month Transition Period for Existing Roles
If you are already a director or PSC on 18 November 2025, you have a transitional period to get verified. Don't leave it until the last minute. The deadline is linked to your company's confirmation statement.
Existing Directors: You must verify your identity and confirm this when your company files its next confirmation statement. The first confirmation statements subject to this rule will be those with a statement date from 18 November 2025 onwards. This effectively gives you until your company's next filing deadline to comply, but early verification is strongly encouraged.
Existing PSCs: The deadline for PSCs is slightly different. You will have a 14-day window to provide your verification details.
If you are also a director of the company, this 14-day window starts from the company’s confirmation statement date.
If you are a PSC but not a director, your 14-day period begins on the first day of your month of birth as it appears on the register (e.g., if your birth month is March, your window starts on 1 March 2026).
Companies House estimates that between 6 and 7 million individuals will need to verify their identity by mid-November 2026. With numbers that large, it pays to act sooner rather than later.
How to Verify Your Identity: The Two Main Paths
The process of verifying your identity has been designed to be as straightforward as possible. There are two primary methods available.
1. Directly with Companies House using GOV.UK One Login
This is the fastest, easiest, and free-of-charge method for most people. GOV.UK One Login is a unified system for accessing government services securely.
What you will need:
You will need a form of photo ID, such as:
A valid UK passport
A valid driving licence (full or provisional)
A biometric residence permit (BRP)
The process:
Go to the official government page to begin: Verify your identity for Companies House.
You will be guided through the GOV.UK One Login process. This typically involves using your smartphone to scan your face and your photo ID document.
The average completion time using the app is just a few minutes. If you don't have a smartphone or prefer not to use one, there are browser-based options and even in-person support at Post Office branches for those who need it.
Once you have successfully verified your identity, you will be issued an 11-character personal code. This code is unique to you, not your company. You will need to keep it safe, as it's your key to proving your verified status in the future.
2. Through an Authorised Corporate Service Provider (ACSP)
The second option is to use an ACSP. These are regulated professionals who are authorised to conduct identity checks on behalf of their clients. This category includes:
Accountants
Solicitors
Company formation agents
This path may be suitable if you already use an agent for your company's compliance and secretarial duties. An ACSP will perform the necessary identity checks to the same standard as Companies House and handle the process for you. If you verify through an ACSP, they will provide your details to Companies House, and your personal code will be sent to the email address they provide.
At HiThrive, our company secretary service is designed to give you complete peace of mind. We can manage this verification process for you, ensuring you and your company remain fully compliant without the administrative burden.
The Consequences of Non-Compliance
The government has been clear that these new rules have teeth. Failing to verify your identity within the required timeframe is not just a minor oversight; it will be a criminal offence. While Companies House intends to take a supportive and proportionate approach to enforcement initially, the consequences for persistent non-compliance are serious.
Acting as a director without being verified will be an offence.
Fines: Financial penalties can be issued to individuals who fail to comply.
Blocked Filings: Your company may be unable to file documents at Companies House, which can lead to further complications and penalties.
Inability to Start a New Company: You will be prevented from incorporating a new company or being appointed to another board until you are verified.
Company Strike-Off: In the most severe cases, failure to comply could ultimately lead to the company being struck off the register.
These measures are in place to ensure the integrity of the system. The goal isn't to punish businesses, but to weed out the bad actors who exploit the system for illicit gain.
The Broader Benefits: Why This Is Good for Business
While it may seem like another piece of red tape, identity verification brings tangible benefits that will strengthen the entire business ecosystem.
Increased Trust and Transparency: Knowing that the individuals behind a company have been verified builds confidence. This reduces the risk of fraud and helps you make better-informed decisions when entering into business relationships.
Enhanced Data Accuracy: A clean, reliable company register is a valuable economic asset. It provides a more accurate picture of the UK's corporate landscape, which is vital for investors, lenders, and policymakers.
Combatting Economic Crime: By making it harder to appoint fictitious directors or hide behind shell companies, these measures directly tackle money laundering, terrorist financing, and other forms of economic crime.
Protecting Your Business: A more transparent system protects your own company from being inadvertently caught up in fraudulent schemes or having its identity cloned.
As Louise Smyth, CEO of Companies House, stated, "Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register." This is a collective effort to create a fairer and more secure environment for all legitimate businesses to thrive.
Practical Steps to Prepare for the Change
The message from Companies House is clear: verify early. Here are some practical steps you can take now to ensure you are ready.
Communicate with All Directors and PSCs: Ensure everyone in a relevant role within your company is aware of the new requirements and the deadlines. Don't assume they already know.
Check Your Company's Details: Log in to Companies House and confirm that all director and PSC information is correct, especially dates of birth. An incorrect date of birth can cause delays in the verification process.
Decide on a Verification Method: Will you and your fellow directors verify individually through GOV.UK One Login, or will you use an ACSP like HiThrive to manage the process for everyone? Discussing this now will save time later.
Verify Early: You can voluntarily verify your identity right now. Doing so before the November deadline means one less thing to worry about. Once you have your personal code, store it securely. You can save it to your Companies House online account for easy access.
Review Your Company Secretarial Support: Is your current provider equipped to handle these new requirements? If you manage compliance yourself, do you have the time and knowledge to stay on top of it? This could be the perfect opportunity to consider a professional service that can take this weight off your shoulders.
Managing a business is demanding enough without having to become an expert in corporate law. The changes coming are significant, but they don't have to be a source of stress. With a little preparation and the right support, you can navigate this transition smoothly and confidently.
