Understanding the Companies House ID Verification Changes and Requirements in 2025

As of 8th April 2025, Companies House has been rolling out voluntary identity verification for company directors, Persons with Significant Control (PSCs), and individuals submitting filings on behalf of a company. This forms part of a wider set of reforms introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

By 18 November 2025, ID verification will become mandatory for all new company formations and appointments. A 12-month transition period will begin at that point, during which existing directors and PSCs must verify their identity by autumn 2026 to remain compliant.

These reforms aim to:

• Crack down on fraudulent company formations
• Improve the reliability of the public register
• Strengthen trust in UK businesses and corporate governance
• Help Companies House identify and take action against bad actors

At Accounting Wise, we’re committed to helping our clients stay ahead of these changes. Whether you’re forming a new company or managing an existing one, we’ll ensure the identity verification process is seamless and fully compliant.

In this guide, we’ll explain:

• Who needs to verify their identity
• How the ID process will work in practice
• Key dates and deadlines
• How Accounting Wise and Formations Wise can help you meet your obligations efficiently

Why Is Companies House Introducing ID Verification?

The UK company register has long been one of the most open in the world but that openness has also made it vulnerable to misuse. In recent years, concerns have grown over the ease with which fraudulent companies could be incorporated, often for activities like money laundering, tax evasion, or concealing ownership.

In response, the UK government introduced sweeping reforms under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). One of the cornerstone changes is the introduction of identity verification for all directors, Persons with Significant Control (PSCs), and third-party agents who interact with Companies House on behalf of businesses.

The goal is simple: make the register more trustworthy and transparent.

Identity verification is expected to:

• Prevent fraudulent company formations by ensuring all individuals on the register are real and accountable
• Improve the accuracy and reliability of Companies House data, which is widely used by financial institutions, suppliers, and the public
• Enhance corporate transparency and accountability
• Support law enforcement by making it easier to trace and investigate suspicious entities

As of 2025, Companies House has been granted enhanced powers to scrutinise, reject, or query filings and remove unverifiable data from the public record. These changes reflect a shift from passive record-keeping to active gatekeeping.

At Accounting Wise, we see this as a positive step forward especially for our clients who operate with integrity and want to protect their businesses from reputational and legal risks. We’re here to help ensure your filings, company information, and director records remain fully compliant in the new regulatory landscape.

Who Needs to Verify Their Identity?

Under the new Companies House ID verification regime, a wide range of individuals involved in UK company formation, governance, and administration must complete identity checks either directly or through an authorised intermediary.

Here’s who must verify their identity from autumn 2025 (with voluntary compliance beginning 8 April 2025):

Company Directors

Whether you’re registering a new company or already listed as a director, you’ll need to verify your identity with Companies House. This applies to:

• Directors of limited companies (Ltd)
• Directors of public limited companies (PLC)
• Directors of community interest companies (CICs)
• Any future appointees (ID verification is now part of incorporation)

Existing directors will have a 12-month grace period to complete the process once mandatory rules begin in autumn 2025. Failure to verify may lead to consequences, including being flagged on the register or being barred from acting.

Persons with Significant Control (PSCs)

If you’re classed as a PSC for example, because you:

• Own more than 25% of a company’s shares
• Hold more than 25% of the voting rights
• Have the right to appoint or remove directors

you must also complete identity verification with Companies House.

This step is crucial for improving corporate transparency, ensuring that beneficial ownership is clearly documented and verifiable.

Members of LLPs (Limited Liability Partnerships)

For LLPs, designated members who carry additional compliance responsibilities are required to verify their identity in line with directors and PSCs of companies. This also includes new members joining an LLP.

Company Formation Agents and Other Third Parties (ACSPs)

If you form companies or file information on behalf of clients, you must be registered with Companies House as an Authorised Corporate Service Provider (ACSP).

To become an ACSP, your business must:

• Be supervised by an appropriate UK anti-money laundering (AML) supervisory body (e.g. ICAEW or HMRC)
• Complete a formal ACSP registration process, including identity checks for key personnel
• Conduct ID checks on clients before submitting filings
• Keep detailed records and comply with AML standards

We are preparing for this shift by ensuring full ACSP compliance and equipping our team to handle identity verification securely on behalf of our clients.

When Will Identity Verification Be Required?

The rollout has already started, throughout 2024 and into early 2025. While a precise date for when the ID checks become mandatory hasn’t been confirmed as of July 2025, Companies House has stated that existing directors and PSCs will have a transition period once the system is live.

For new company incorporations, ID verification will be mandatory at the time of formation as soon as the new system goes live.

How Will the ID Verification Process Work?

From 2025, identity verification will become a core part of interacting with Companies House. Whether you’re a director, PSC, or authorised agent, you must complete verification before being allowed to incorporate, act for a company, or submit filings.

There are two official routes for ID verification:

1. Direct Verification via Companies House

If you choose to verify your identity directly, you’ll use a new Companies House online portal. The process is designed to be secure and user-friendly, and involves:

• Uploading an official ID document, such as a UK passport or photo driving licence
• Providing a live facial image, typically a selfie or short video, to match with your ID
• Automated verification of document validity and biometric match

This digital process uses Identification Document Validation Technology (IDVT), in line with the UK government’s digital ID standards.

Once verified, you will receive a unique Companies House identifier confirming your verified status. This ID will be attached to your public register profile and filings.

2. Verification via an Authorised Corporate Service Provider (ACSP)

If you’re working with a trusted third party like us – you can complete your identity verification through an ACSP. This is particularly useful for:

• Clients incorporating a new company
• Directors or PSCs added during a company restructure
• Businesses seeking expert help with regulatory filings

To offer this service, ACSPs must be:

• Registered with Companies House
• Supervised by a UK anti-money laundering (AML) body, such as ICAEW or HMRC
• Fully compliant with ID verification standards, including recordkeeping and cross-referencing biometric data and official documents

We already operate as an ACSP. This means we can carry out identity checks on your behalf, ensuring compliance without you needing to navigate the new portal alone.

Why This Matters

Only individuals who have passed ID verification will be allowed to:

• Act as company directors
• Submit information to Companies House (such as confirmation statements, director changes, PSC updates)
• Form new companies or LLPs

Each verified individual will receive a unique identifier, which must be used when submitting filings or being appointed to company roles.

This identifier acts as a digital signature a key part of the UK’s drive toward a more secure and transparent corporate register.

What Happens If You Don’t Verify?

Identity verification is becoming a legal obligation under the Companies House reforms introduced through the Economic Crime and Corporate Transparency Act 2023. From autumn 2025, all new directors and Persons with Significant Control (PSCs) must verify their identity before they can be appointed. Existing directors and PSCs will have a 12-month transition period to complete the process.

Failure to comply with these requirements can result in significant legal and operational consequences.

Consequences of Non-Compliance

If an individual or company fails to complete identity verification, the following penalties and restrictions may apply:

• Ineligibility to act as a director
  Directors who do not verify their identity will be legally prohibited from holding the position.
• Restrictions on company filings
  Companies House may refuse to accept filings submitted by or relating to unverified individuals. This can include confirmation statements, changes to directors, or company updates.
• Financial penalties
  Companies and individuals may face fines for non-compliance, particularly if deadlines are missed or verification is deliberately avoided.
• Risk of criminal prosecution
  Repeated or intentional failure to verify identity may be treated as a criminal offence, especially if linked to fraudulent activity or false declarations.

Companies House Enforcement Powers

To ensure compliance, Companies House has been granted expanded authority to enforce these new measures. This includes the power to:

• Remove unverified individuals from the public register
• Annotate the register to highlight suspicious or unverifiable entries
• Share data with other government departments, such as HMRC, the National Crime Agency, and regulatory bodies

These powers enable Companies House to play a more proactive role in protecting the integrity of the UK’s business environment and improving trust in the corporate register.

How Accounting Wise Can Help

At Accounting Wise, we support directors and business owners with meeting their Companies House obligations, including preparing for the new identity verification rules. Our team can help you understand what the changes mean for your company and ensure you remain compliant as the rules take effect.

We will also be offering verification services as a registered Authorised Corporate Service Provider (ACSP). This means we can manage the ID verification process on your behalf, whether you are starting a new company or managing updates to existing directorships.

If you have questions about how to prepare or need support managing compliance in 2025 and beyond, we are here to help.