From 18 November 2025, Companies House has introduced mandatory identity checks for directors, people with significant control (PSCs), and LLP members. This is one of the biggest reforms in UK company law in over a century, designed to improve transparency, tackle fraud, and strengthen trust in the business register.
Under the Economic Crime and Corporate Transparency Act 2023, anyone setting up, running, or controlling a UK company must now prove their identity. This applies to:
- New directors and PSCs – you must verify before appointment or incorporation.
- Existing directors and PSCs – you’ll need to verify within 12 months, usually when filing your next confirmation statement.
- LLP members – also required to verify before appointment or at the next filing date.
Why does verification matter? For years, the UK register has been criticised for allowing fake or fraudulent entries—companies listed under names like “Donald Duck” or “Santa Claus”. These loopholes made it easier for criminals to launder money or hide behind shell companies.
The new checks aim to:
- Ensure directors are who they say they are
- Reduce economic crime and money laundering
- Boost confidence in UK businesses by making the register more reliable
There are two approved routes to verify your identity:
- Directly via GOV.UK One Login
- Free and usually completed in minutes.
- Options include using the ID checking app, answering security questions, or submitting photo ID details online and at a Post Office.
- Through an Authorised Corporate Service Provider (ACSP)
- Accountants, solicitors, or company formation agents supervised under AML rules.
- They can verify on your behalf, ideal for businesses with multiple directors.
Once verified, you’ll receive a personal Companies House code. This code is unique to you and must be used when filing documents, making director appointments, or registering as a PSC.
Failing to verify your identity will now result in penalties such as:
- Fines or disqualification from acting as a director
- Inability to file documents or incorporate new companies
- Public register updates showing overdue verification
For small limited companies, this change will be a positive step. Verified identities mean:
- Greater trust from customers, suppliers, and investors
- Reduced risk of fraud within your company structure
- A stronger foundation for growth
The new Companies House identity checks mark a turning point in UK corporate governance. While the process may feel like an extra step, it’s a one-off verification that strengthens the integrity of the register and protects legitimate businesses.
If you’re a director or PSC, don’t wait until your next filing—verify early to avoid last-minute stress. And if you’d prefer support, your accountant (like us!) can handle the process as an ACSP, ensuring everything is compliant and seamless.
