In a digital age where fraud and identity theft are increasing, transparency and verification are becoming more important than ever. The UK government, through Companies House, is introducing new rules on identity verification for those who hold key roles in companies.

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These changes aim to strengthen trust, crack down on misuse of the corporate register, and ensure that those who run or control companies are who they claim to be.

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What is Companies House Identity Verification?

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Companies House identity verification is a process requiring certain individuals associated with UK companies—primarily directors and persons with significant control (PSCs)—to confirm their identity to Companies House. The goal is to tie corporate roles more directly to verified, real-world identities, thereby improving the integrity of the register.  

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Upon successful verification, an individual will receive a personal code (sometimes called a Companies House personal code). This code becomes their unique identifier for any company role requiring identity verification.

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The verification requirement is being introduced gradually, and in stages.

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Why is This Change Being Introduced?

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There are several driving forces behind the new identity verification regime:

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Combatting Fraud & Misuse of the Register

Over the years, there have been many instances of fake or false directors, shell companies, or malicious use of the corporate register. Requiring identity verification makes it harder for bad actors to impersonate someone or hide behind anonymity.  

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Improving Data Integrity & Confidence

Accurate, reliable corporate data is critical to businesses, investors, regulators, and the public. Verification boosts confidence in who is behind companies.  

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Legal Mandate under ECCTA

The changes are rooted in the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which gives Companies House powers to require identity verification and to regulate authorised agents who help with verification.  

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Strengthening Anti-Money Laundering (AML) Protections

By ensuring persons in key company roles are verified, the UK aims to strengthen compliance against financial crime, money laundering, and other illicit use of companies.  

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Who Needs to Verify Their Identity?

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Not everyone involved with a company needs to go through this process. The main categories of individuals affected include:

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1. Directors

Any person appointed as a director (or equivalent officer, such as managing officers) will need to verify their identity.  

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2. Persons with Significant Control (PSCs)

Individuals who hold or control significant ownership or influence over a company will also have to verify their identity.

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3. Authorised Corporate Service Providers (ACSPs)

These are third parties (for example, solicitors, accountants, formation agents) authorised by Companies House to carry out identity verification on behalf of individuals. If a person uses an ACSP to verify, the ACSP must also be registered and meet certain standards.  

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4. Other filers or officers (future phases)

Over time, the regime may extend to those who file with Companies House, limited partnerships, corporate directors, and corporate PSCs.  

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It’s important to note that sole traders are not in scope, because they do not register with Companies House in the same way.  

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Timeline & Key Dates

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Understanding when the changes take effect is crucial for compliance. Here’s a rough timeline:

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• 18 March 2025

Service providers (accountants, formation agents, etc.) started to be able to register as ACSPs to verify identity for others.  

• 8 April 2025

Voluntary identity verification became available to directors and PSCs directly via Companies House (via GOV.UK) or through ACSPs.  

• 18 November 2025

Identity verification becomes mandatory for new directors and PSCs. Also, existing directors and PSCs must verify within a 12-month transition period.  

During that 12-month period, existing directors and PSCs will need to connect their verified identities to their roles via their next annual confirmation statements (or as per other deadlines).

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How the Verification Process Works

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The identity verification process is designed to be as streamlined as possible, while still being robust. Below is an overview of how it works:

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Methods of Verification

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You can verify your identity in one of two main ways:

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1. Directly via Companies House / GOV.UK One Login

This is the “in-house” method, free of charge, where individuals themselves undergo checks via the GOV.UK One Login system.  

2. Via an Authorised Corporate Service Provider (ACSP)

An ACSP can perform identity verification on behalf of a person. The methods and standards must be equivalent to those used by Companies House.

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Post Office (In-Person Option)

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For individuals who cannot verify online (for instance, due to lack of suitable photo ID or inability to complete checks digitally), there is an in-person option via selected Post Office branches as part of the GOV.UK One Login process.  

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What Happens If You Don’t Verify

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Non-compliance can have serious implications:

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• You won’t be able to appoint a director or PSC

From 18 November 2025, new directors or PSCs will need to have verified identity before appointment or company incorporation.  

• You may be unable to file confirmation statements or other documents

For existing directors and PSCs, verification will need to be tied to confirmation statements or other filings.

• Possible penalties or legal consequences

The new rules are backed by statute (ECCTA), so failure to comply may lead to enforcement actions or being unable to maintain certain roles.

• Company-level risks

A company may find itself unable to transact, make filings, or otherwise continue properly under UK law if key individuals are unverified.

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Given these risks, it’s strongly advisable to act proactively rather than wait for deadlines.

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Key Takeaways

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• Identity verification via Companies House is a new requirement to tie directors and PSCs to verified real-world identities, improving register integrity and reducing fraud risk.

• Voluntary verification is available from 8 April 2025, while mandatory verification begins 18 November 2025, with a 12-month window for existing directors and PSCs.  

• Individuals can verify via GOV.UK One Login (direct route) or through Authorised Corporate Service Providers (ACSPs).

• Non-compliance carries serious consequences—companies and individuals need to plan ahead, communicate, and act early.

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Need more information or assistance? Contact us: info@xenithwealth.co.uk