New Companies House ID Checks: What They Mean for You

As part of sweeping reforms aimed at increasing transparency and reducing economic crime, Companies House has introduced mandatory identity verification checks for company directors, people with significant control (PSCs), and those filing on behalf of companies.

These new measures are part of the Economic Crime and Corporate Transparency Act 2023, and they mark a major shift in how UK businesses are monitored and regulated.

Why Are ID Checks Being Introduced?

The main goal is to combat fraud and misuse of UK corporate structures. Until now, it was surprisingly easy to register a company in the UK using fake names or addresses. This loophole has been exploited by criminals to launder money, commit fraud, or operate shell companies under false identities.

The new rules aim to ensure that only real, identifiable individuals can incorporate and manage companies on the UK register.

Who Needs to Verify Their Identity?

The ID checks apply to several key roles:

• Company directors (existing and newly appointed)
• People with significant control (PSCs) over a company
• Anyone filing documents on behalf of a company, including agents and presenters (such as lawyers)

If you're involved in forming or managing a company, you’ll likely need to go through this process.

How Does the ID Check Work?

There are two main routes for verification:

1. Direct verification through Companies House – This involves uploading a photo of an official identity document (like a passport or driving licence) and a live selfie, which is matched using facial recognition technology.
2. Verification through an Authorised Corporate Service Provider (ACSP) – These are intermediaries (such as accountants or company formation agents) who are registered with a supervisory body for anti-money laundering purposes. They can carry out ID checks on your behalf.

This is a one-time verification unless your role or company involvement changes.

When Do the Checks Start?

Companies House's new identity verification requirements are being implemented in phases throughout 2025 and 2026. Here's a breakdown of the key dates:

• 8 April 2025: Voluntary identity verification begins. Directors, People with Significant Control (PSCs), and individuals filing on behalf of companies can choose to verify their identity.  
• Autumn 2025: Mandatory identity verification for new directors and PSCs at the time of company incorporation or appointment. A 12-month transition period starts for existing directors and PSCs to verify their identity, which must be completed by autumn 2026.  
• By Spring 2026: Mandatory identity verification for individuals filing documents at Companies House, including third-party agents such as accountants and solicitors.  

What Happens If You Don’t Comply?

Non-compliance is not optional. If you fail to verify your identity:

• You won’t be allowed to register as a director or PSC
• You may be removed from the register
• Your company could be fined or struck off

Companies House will also have increased powers to challenge and reject filings that don’t meet verification standards.

Final Thoughts

The new Companies House ID checks signal a major step toward corporate accountability in the UK. While the extra administration might seem like a hassle, it is designed to protect legitimate businesses, investors, and the public from fraud and abuse.

Get ahead of the changes by ensuring your company records are accurate and understanding your responsibilities under the new law.