The introduction of mandatory identity verification at Companies House is one of the most significant reforms to the UK corporate register in more than a century.
For years, the register has relied heavily on information being filed accurately and honestly. The result was a system that was open to misuse, including fictitious directors, false company addresses and opaque ownership structures.
The new regime is designed to change that. Introduced under the Economic Crime and Corporate Transparency Act 2023, identity verification aims to make sure that the people behind UK companies are real, identifiable and accountable. It is also intended to improve trust in the register and help prevent economic crime, including fraud and money laundering.
The scale of the challenge
The scale of the task is considerable. Around 6 to 7 million individuals, including directors, people with significant control and LLP members, are expected to verify their identity. Mandatory verification went live on 18 November 2025, with a 12-month transition period running to November 2026.
This is both an administrative and behavioural change. Success will depend not only on the technology working effectively, but also on directors, companies and advisers engaging with the process early enough to avoid last-minute pressure around filing deadlines.
Progress so far
More than 1 million individuals verified their identity during the voluntary phase, with around 4.5 million now understood to have completed the process. That represents meaningful progress, but there remains a substantial number of individuals who will need to comply before the end of the transition period.
Early implementation also suggests that behavioural inertia is a real barrier. There is a risk of congestion as deadlines approach, particularly around confirmation statements. Reports that only 47% of directors have included their identity verification codes in CS01 filings, alongside a fall in on-time CS01 filings to 55%, suggest that the new requirements are already creating practical disruption for some companies.
Has it worked yet?
The short answer is that it is too early to say. Identity verification is now embedded as a legal requirement, and it should have a preventative effect on new incorporations and appointments. Over time, the register should become more reliable, particularly for newly formed companies and newly appointed directors.
The wider reforms are also giving Companies House more authority than it has historically had. Its new powers to query, reject and remove inaccurate filings may prove just as important as identity verification itself. Since March 2024, 151,000 company addresses have been removed from the register, helping to protect individuals from identity hijacking and misuse of their personal details.
However, the transition has not been without difficulty. Some users have experienced problems with the One Login system, while directors without biometric passports may face additional challenges. For boards with multiple directors, the practicalities of ensuring that everyone has verified and obtained the necessary codes before filing deadlines can create additional pressure.
Some ID verification anomalies continue to cause delays and uncertainty, particularly for directors and PSCs who may face practical difficulties verifying their identity. This can include individuals who do not have an email address, do not hold current photographic ID, or are elderly and less able to navigate the online process. When the regime was first introduced, there appeared to be limited flexibility for these situations, which raised concerns as to whether the system was fully fit for purpose. Companies House has since introduced alternative verification routes, although these are not always straightforward in practice. There also remains limited readily available guidance on how companies should deal with ID verification where a PSC is deceased. Hillier Hopkins is registered as an Authorised Corporate Service Provider and can assist clients with ID verification requirements and related Companies House filings.
So, has identity verification worked? In terms of raising standards and forcing greater engagement with the register, it has taken important steps forward, but it is still too soon to know whether it will materially reduce fraud or deliver a consistently accurate register. The system is in place, but it remains in a transitional phase. A clearer judgement may only be possible once the November 2026 deadline has passed.
Further reforms are also on the way, including the move towards electronic filing of statutory accounts, although implementation is not expected before April 2028. For now, companies should focus on understanding their verification obligations, engaging with the process early and avoiding unnecessary disruption to future filings.
