The landscape at Companies House is about to change in a fundamental way, as the UK moves to implement new identity verification (IDV) checks under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).
These changes will ripple through many companies, affecting how they hire directors, manage persons of significant control (PSCs), and interact with third-party service providers. Understanding exactly what is coming, who must comply, and why the timing has finally arrived is essential for all businesses with a UK footprint.
What’s changing and when
The Government has laid out a phased rollout of identity verification for individuals associated with companies, particularly directors, PSCs, and members of LLPs. As of 8 April 2025, voluntary identity verification becomes available: individuals may choose to verify via the new Government service using GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP). From that date, ACSPs themselves can inform Companies House that an individual has been verified.
The more consequential threshold arrives on 18 November 2025, from which date identity verification becomes mandatory for new directors and PSCs. New directors must verify before incorporation or before appointment to an existing company. Newly notified PSCs must verify within 14 days of notification (unless their identity is already verified).
For existing directors and PSCs, the requirement will attach when they next file their annual confirmation statement, during a 12-month transition window.
In due course, Companies House plans also to bring in verification for individuals who file documents (e.g. company secretaries), LLP members more broadly, corporate directors or corporate PSCs, and limited partnerships. However, these wider requirements have later implementation dates still to be confirmed.
When an individual successfully verifies, they are issued a personal code. That code becomes the gateway for connecting their verified identity to any Companies House role they hold. From 18 November 2025 onward, whenever someone files a confirmation statement, or acts in capacities such as director appointments or PSC submissions, they will need to supply that personal code and a verification statement.
Meanwhile, the regime of Authorised Corporate Service Providers (ACSPs) plays a central role. From 18 March 2025, firms and individuals that carry out AML-supervised services, such as accountants, company formation agents, solicitors, and chartered secretaries, can apply to become ACSPs. Once authorised, they can perform identity verification on behalf of clients.
Over time, strict rules will require that third-party filers use ACSP status to submit documents. ACSPs must meet the same assurance standard as the direct GOV.UK route.
Implications for companies and what to be ready for
The introduction of mandatory identity checks heralds real operational change. First, every company should identify all existing directors and PSCs and ensure they have or will obtain a personal code. That may require running internal campaigns to prompt early voluntary verification, thus avoiding last-minute bottlenecks. Many stakeholders may not yet have engaged with the GOV.UK One Login service or considered the need to link their verified identity to their company roles.
Second, companies that use external agents (formation agents, solicitors, accountants) need to check whether those agents are (or will become) ACSPs. If a firm acting on behalf of the company is not ACSP-authorised, it may not be permitted to file certain documents in future unless the identity connection is handled correctly. This raises questions of compliance oversight, contractual arrangements, and fees. Agents may demand new compliance assurances or fees for handling verification. Some commentators anticipate that accountants or formation agents will bundle verification as an additional charging service.
Third, there will be new recordkeeping and audit obligations. ACSPs or companies acting as verifying agents must retain documentary evidence of identity checks for seven years. Checks must meet detailed standards; matching photos, cryptographic features in documents, verifying recent activity evidence (utility bills, bank statements), and ensuring documents are not expired. If verification fails, companies must retain records of attempts and require the individual to furnish better evidence.
Fourth, companies may face risks and enforcement consequences. After 18 November 2025, failure to verify could block filings (for instance, confirming changes to directors or PSCs), incur inspection, penalties, or director disqualification. The government and Companies House have signalled a “proportionate” enforcement regime initially, but over time the tolerance will likely reduce. Some filings simply will not be accepted unless the code is supplied. At worst, recurring failure may affect directorship eligibility or lead to disqualification.
Finally, there is a risk of congestion, especially around the transition window. Companies House anticipates that six to seven million individuals will need verification within the first year.
That scale implies potential delays, increased support demand, technical glitches, or user errors, particularly for overseas directors or those with nonstandard identity documents.
At this scale, it is prudent for companies to move early rather than waiting until the statutory deadlines press. Encouraging or mandating voluntary verification ahead of November 2025 may smooth the path and help avoid administrative logjams.
Why now, and what’s driving the change
These new checks are not arbitrary bureaucratic tinkering. They come in response to persistent concerns that the UK’s corporate registry has been abused by bad actors, shell companies, fraudsters, money launderers, who hide behind opaque ownership, fake names, or straw directors. Until now, it has been relatively straightforward to set up a UK company without rigorous proof of identity, which weakens the integrity of the public record.
The ECCTA reforms, including identity verification, flow from a strategic shift to strengthen corporate transparency and combat economic crime. The law imposes statutory objectives on Companies House to ensure the accuracy of the register, prevent misuse, and deter unlawful conduct. The identity verification regime helps to ensure that individuals genuinely behind companies are known and linked to those legal entities, reducing opportunities for impersonation or undeclared control.
The timing reflects a balance between urgency, given the scale of illicit use, and practicality. Rolling it out immediately would have caused chaos; phasing gives businesses and individuals time to adapt. Hence voluntary verification begins first, then moving to mandatory use for new roles, then a transition window for incumbents. Companies House correspondingly estimates it will take until November 2026 to bring millions into compliance. The staged approach also allows soft enforcement, technical debugging, user education, and support mechanisms.
On top of that, global pressure to combat money laundering, beneficial ownership opacity, and financial crime has been increasing. Other jurisdictions are tightening their corporate registries, and the UK must maintain regulatory credibility. In effect, these changes help preserve trust in the UK as a reliable jurisdiction for legitimate business, while shutting off a key vulnerability exploited by illicit actors.
The new Companies House ID verification regime is a landmark reform. It shifts UK company registration from a relatively open-access system to one underpinned by verified identities. Companies must prepare now, both by ensuring their key individuals verify early, and by ensuring their agents or advisers are ready (and ideally ACSP-registered). While there may be bureaucracy and friction in the near term, these checks are designed to protect the integrity of the corporate register, restore confidence, and reduce misuse by those seeking to exploit regulatory gaps.
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