Identity Checks on UK Companies to Become Stricter under New Act
UK company directors and those with significant control are set for compulsory identity checks as a part of the sweeping Companies House reforms that are set to go live from Autumn 2025.
The upcoming requirement for identity verification, to be implemented through the Economic Crime and Corporate Transparency Act 2023, is a huge shift in how Companies House will handle data from registered firms. The aim is to improve transparency, reduce economic crime, and protect the accuracy of the public register.
Under the Act, company directors, registerable persons with significant control (PSCs), and other relevant individuals will be required to be identified by Companies House. Without verification, directors will not be permitted to act in their role, something that can have a severely detrimental impact on business activities if overlooked.
Key Dates & Transition Timeline
The identity verification platform went live on a voluntary basis on 8 April 2025, allowing people to begin early. But the scheme will be compulsory for from this November.
For existing directors and those who are being affected, the government has signaled a 12-month transition period, starting in November too. Deadline for compliance will be depending upon when a firm’s next confirmation statement is required. This staggered approach will result in some firms having less time than others to comply.
Two Methods to Verify Identity
There are two methods through which individuals will be able to complete their identity verification:
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Directly through Companies House
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Indirectly via an Authorized Corporate Service Provider (ACSP)
An ACSP, such as a registered law or accountancy firm, must be authorized by Companies House and subject to anti-money laundering legislation. Having been authorized, they can carry out identity verification checks on behalf of individuals and confirm their verified status.
For those that are verifying directly, a government application or website is used. The applicants will need to present valid identification such as a passport or driving licence, and may be requested to submit to facial recognition and security question processes.
Preparation for Compliance
Although the process of verification seems pretty simple, the real threat is doing nothing. A failure to verify in time can disrupt company filings or restrict a director’s ability to act.
Companies can prepare for change by taking these straightforward steps:
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Check ID Documents
Ensure passports and other identification documents are valid and up-to-date.
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Inform Internal Parties
Inform directors and PSCs about the need for verification and what it means for them.
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Select Your Verification Method
Select verification directly from Companies House or to appoint an ACSP to complete the process.
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Monitor Confirmation Statement Dates
Remember your next confirmation statement date to prevent missing your compliance period.
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Take Advantage of the Voluntary Window
Make the most of completing verification now that the voluntary choice is available.
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Clean Up Your Company Records
Make sure your statutory registers correctly state your directors and shareholders.
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Check Previous Filings
Review your Companies House history to correct any mistakes before the deadline for compliance.
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Take Legal Advice
Meet with a legal or corporate service provider to gain an understanding of the wider implications of the Act.
Conclusion
This move towards tighter identity verification is a cornerstone of the UK government’s push against economic crime and building trust in corporate disclosure. While it may seem like added bureaucracy, taking action early will reduce the potential for future disruption and even make internal governance controls more robust.
With a mandatory regime just months away from being put in place, now is the time for UK companies to stay ahead of the curve and ensure that they are properly prepared.
Chirag
Chirag, a respected speaker and motivator with 5+ years’ experience, helps students overcome public speaking fears, values respect, and excels in SEO and research-driven content.