Are you ready for one of the most important shifts in UK company law? From April 2025, identity verification becomes a legal requirement for anyone involved in setting up or managing a company in the UK.
This landmark change under the Economic Crime and Corporate Transparency Act 2023 marks a turning point for corporate accountability and transparency.
Whether you’re a director, a person with significant control (PSC), or an agent acting on behalf of a company, you’ll be expected to prove you are who you claim to be.
So, what does this mean for your business? Let’s break down who needs to verify, how, and what happens if you don’t comply.
What Is the Companies House Identity Verification?
The Companies House identity verification is a new legal requirement designed to improve transparency and trust in the UK’s corporate landscape.
Introduced as part of the Economic Crime and Corporate Transparency Act 2023, this process ensures that individuals involved in forming, managing, or owning a company are who they say they are.
Verification can be completed using the GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP). This initiative helps Companies House maintain accurate and reliable data on its register, supporting efforts to prevent fraud, money laundering, and other financial crimes.
When Is the Companies House Identity Verification Launch?
The identity verification requirement officially launched on 8 April 2025. From this date, anyone setting up, managing, or owning a UK company must verify their identity before they can proceed with corporate activities.
The launch is a key milestone in the UK’s efforts to strengthen corporate governance and tackle economic crime. By enforcing this from April 2025, Companies House aims to ensure the accuracy of its data and prevent the misuse of corporate entities.
This aligns with international standards on transparency and supports a more secure and trustworthy business environment in the UK.
Why Has Companies House Introduced ID Checks for Directors and Company Officers?
Identity verification has become essential in an era where economic crime is on the rise. By introducing these ID checks, Companies House aims to:
- Enhance data accuracy: Ensuring all entries in the register reflect real individuals
- Combat fraud: Making it harder for criminals to create fake company structures
- Improve business trust: Allowing partners and consumers to know who they’re dealing with
- Comply with global transparency standards: Meeting the expectations of financial regulators and trade partners
The move was widely welcomed by the business and legal community, with Glenn Collins of ACCA calling it a step that will “strengthen the integrity of the register”.
Organisations like Transparency International and Open Ownership highlighted its role in preventing criminals from using false identities.
Government ministers emphasised that these reforms are key to protecting the UK economy and boosting business confidence.
Who Must Complete the Companies House Identity Verification in the UK?
If you’re involved in managing or setting up a business in the UK, chances are you’ll need to complete identity verification.
The Requirement Applies To
- New directors and Persons with Significant Control (PSCs): Verification is mandatory before incorporation begins officially
- Existing directors and PSCs in companies: Expected to verify during the annual confirmation process cycle
- LLP members in active partnerships: Those in Limited Liability Partnerships must also verify regularly
- Anyone filing information or acting officially: Such as agents or company secretaries representing registered companies
This requirement also applies to non-UK residents and overseas entities. While identity verification is currently optional, it will become mandatory from autumn 2025.
Companies House advises using the voluntary period now to avoid future delays, as all verification, whether through GOV.UK One Login or an ACSP, follows the same strict standard.
How Does the Identity Verification Work on the Companies House Portal?
Companies House now uses the GOV.UK One Login to handle direct identity verification. This digital platform allows individuals to upload their ID documents and complete facial recognition checks securely.
The Process Involved
- Logging into GOV.UK One Login
- Uploading identity documents like a biometric passport or driving licence
- Completing a facial recognition scan to match your identity
- Submitting your application for confirmation
Alternatively, you can verify your identity through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor. These providers must follow strict verification standards. Both methods offer the same level of assurance.
You only need to complete verification once unless your role changes or your information becomes outdated.
Once verified, your details are linked to the Companies House register, providing greater transparency to the public and other businesses.
What Are the Deadlines and Penalties for Not Verifying Your Identity?
Failure to verify your identity with Companies House won’t go unnoticed. While the verification process is voluntary for now, it is expected to become mandatory by autumn 2025.
What to Keep in Mind?
- Voluntary window starts: 8 April 2025
- Mandatory enforcement begins: Expected from autumn 2025
- Integration with confirmation statements: Existing directors will need to verify during annual updates
Penalties for Non-compliance
- Being barred from filing documents with Companies House
- Inability to register or manage a company
- Financial penalties for breach of compliance
- Risk of criminal prosecution in serious cases
- Possible removal from the public register
The phased approach is designed to give businesses time to adapt. Companies House encourages early action during the voluntary period to reduce delays when the mandatory phase begins.
Failing to comply could halt your business operations and damage your reputation. Taking steps now ensures your company remains compliant and operational when enforcement begins later this year.
How Do the New Rules Support Corporate Transparency and Economic Crime Prevention?
The new identity verification rules are a vital step in the UK’s broader initiative to prevent financial crime and improve corporate transparency. They help ensure that only legitimate individuals can set up and manage companies, enhancing data quality across the register.
Key Benefits of the New Verification Measures
- Stop fraudulent company formations: True identities must now be confirmed before setup
- Prevent misuse of the register: Combats shell companies and inaccurate address listings
- Improve investor confidence: Verified ownership data boosts market trust
- Support lenders and consumers: Enables better decisions with reliable business profiles
Experts across industries, such as the British Chambers of Commerce and Open Ownership, agree that these changes will protect businesses and increase trust. BIPA calls this a “crucial step” toward a more reliable and secure register.
In the long run, these measures make the UK a safer, more credible environment for business, attracting ethical entrepreneurs and responsible investment.
What Steps Do You Need to Take to Meet Companies House ID Verification Standards?
To comply with Companies House identity verification standards, especially as an Authorised Corporate Service Provider (ACSP), you must follow a defined six-step process:
1. Gather Personal Information
Begin the identity verification process by collecting basic personal details. This information helps ensure the person is who they claim to be.
- Full name (including former names)
- Date of birth
- Current home address
- Address history for the past 12 months
- Email address
2. Request Identification Documents
Ask the individual to provide official documents for ID verification. The type of documents required depends on whether you’re using technology or doing manual checks.
- Biometric or machine-readable passport
- Photocard driving licence (UK, EU, Channel Islands, Isle of Man)
- Biometric residence permit or card
- Identity card from EU, Norway, Iceland, or Liechtenstein
- At least one government-issued ID for non-UK residents
- Manual checks require either:
- 2 documents from Group A, or
- 1 from Group A + 1 from Group B
3. Validate the Documents
Ensure that the documents provided are authentic. Use validation technology or manual checks by trained staff.
- Use ID technology to check cryptographic features
- Look for signs of tampering or damage
- Contact the issuing authority or embassy if in doubt
4. Confirm the Person’s Identity
Make sure the ID matches the person. Compare photos, verify name and birth date, and request extra documentation if needed.
- Photo matches the person (especially for remote checks)
- Name, date of birth, and address history are consistent
- Request utility bills or financial statements as additional proof
5. Keep Records
You must maintain full documentation of the identity verification process. These records help ensure compliance and must be stored securely.
- Copies of all identification documents
- Notes and evidence from the verification process
- Details of any failed verification attempts
- Keep records for 7 years
6. Make a Final Decision
Decide whether you’ve verified the person’s identity to the required standard. Then, submit the outcome through Companies House’s online service.
- Report the person’s details and document information
- Confirm that checks were completed to the correct standard
- If unable to verify, retain all records and advise the individual accordingly
Following these six steps ensures you meet Companies House ID verification standards with confidence and accuracy.
Proper compliance not only protects your business but also upholds the integrity of the UK’s corporate registry. Always stay updated with regulatory changes to maintain your verification processes.
Can Agents and Intermediaries Verify Identities on Behalf of Directors?
Yes, agents and intermediaries can act on behalf of individuals during the identity verification process, provided they are registered as Authorised Corporate Service Providers (ACSPs).
These include company formation agents, solicitors, accountants, and chartered secretaries. From 18 March 2025, firms that are AML-supervised can apply for ACSP status.
Agents must follow the Companies House identity verification standard, which outlines procedures such as collecting ID documents, confirming authenticity, and storing verification evidence securely.
Whether conducted online or in person, all verification checks must reach the same standard as direct verification through GOV.UK One Login.
While ACSPs can streamline the process for busy business owners, they also assume responsibility for ensuring that identity checks are accurate and compliant. Companies House may revoke an agent’s authorisation if standards are not met, making diligence essential.
How Does This Reform Impact UK Business Compliance and Registration Going Forward?
The UK’s Companies House reform introduces mandatory identity verification, reshaping business compliance and registration. All new companies must have verified directors and people with significant control (PSCs) before registration is approved.
Existing businesses must ensure leadership is verified during annual confirmation statements. This marks a shift from basic administration to proactive due diligence and legal transparency.
The goal is to build a cleaner, more trustworthy Companies House register, reducing the risk of fraud and misuse. For entrepreneurs and small businesses, this means added responsibility, but also increased credibility and trust.
By allowing only verified individuals to form and manage companies, the reform enhances the integrity of the UK business environment.
It also strengthens the country’s global reputation, encouraging foreign investment, improving transparency, and contributing to long-term economic stability and growth.
Conclusion
The Companies House identity verification launch marks a major shift in UK business regulation. From April 2025, individuals involved in company formation or control must complete identity checks via GOV.UK One Login or an Authorised Corporate Service Provider.
These rules aim to combat fraud, boost transparency, and strengthen trust in the business ecosystem.
While it may add an extra step, early voluntary verification helps avoid future delays. By acting now, you meet legal obligations and contribute to a safer, more reliable business landscape in the UK.
FAQs About Companies House Identity Verification Launch
Do I need to verify my identity if I registered a company before 2024?
Yes. The verification process applies to both newly registered and existing companies, including previously registered directors and persons with significant control.
Will identity verification be required for non-UK residents owning UK companies?
Yes, overseas entities and non-UK residents acting as directors or PSCs (Persons with Significant Control) are also required to comply.
What documents are accepted for Companies House identity verification?
Documents like a valid passport, UK driving licence, or biometric residence permit are commonly accepted, depending on the verification method.
Is there a separate ID verification for limited companies and LLPs?
No, the verification rules apply across various business structures including limited companies, LLPs, and others.
Can identity verification be done manually or is it online only?
While most verification will be done online through the Companies House portal, manual options may be available in exceptional cases.
Will this reform reduce fraudulent company registrations in the UK?
Yes, that’s a key objective. By verifying identities, Companies House aims to enhance corporate transparency and curb economic crime.
Is there a support service if I face issues during verification?
Yes, Companies House provides guidance and technical support via its official website and helpline for anyone experiencing difficulties.
