The UK Government is introducing mandatory identity verification for company directors and people with significant control (PSCs) as part of the Economic Crime and Corporate Transparency Act 2023. This major reform will affect every company registered in the UK, including those based in London and Canary Wharf, and is designed to make Companies House a more transparent and reliable register of business information.
Why the Change is Being Introduced
For many years, Companies House operated largely on trust. Individuals could incorporate companies or register as directors with minimal verification. While this made the UK a quick and accessible place to do business, it also created opportunities for misuse – including identity fraud, fake directorships and the concealment of beneficial ownership.
The government’s new system introduces verified identities for all company directors and PSCs. This reform aims to protect honest business owners, reduce economic crime and improve public trust in the UK’s corporate framework. It is part of a broader effort to modernise corporate law and promote accountability in business management.
For official details, see the government guidance on verifying your identity for Companies House.
When the Rules Come into Force
Identity verification became available on a voluntary basis from 8 April 2025. Directors can now verify through Companies House One Login or with the help of an Authorised Corporate Service Provider (ACSP) such as a solicitor or company formation agent.
From 18 November 2025, identity verification will become mandatory. New directors and PSCs must verify their identity before appointment or incorporation, while existing directors must do so before filing their next confirmation statement after the new system takes effect.
Once verified, each individual will receive a unique personal identifier from Companies House. This means directors who hold positions in more than one company only need to verify once, with the same identifier linked to all their roles.
What Happens if a Director Fails to Verify
After the new rules come into force, it will be an offence for an unverified person to act as a director. Companies that allow unverified individuals to perform director duties may also face penalties. Directors who are not verified will not be permitted to authorise filings or act on behalf of the company.
The government has made it clear that identity verification is a key part of future corporate governance. Non-compliance could result in enforcement action or even criminal liability.
What Directors and Companies Should Do Now
Directors are encouraged to prepare early for the new system. It is sensible to ensure that valid identification documents, such as a passport or photo driving licence, are readily available. Directors should also check that company details held at Companies House are accurate and up to date.
Businesses should establish internal procedures to ensure that all appointments, filings and governance decisions are made only by verified individuals. Early action will help prevent disruption once the system becomes compulsory.
For further official guidance, visit when you need to verify your identity for Companies House.
Why Early Compliance Matters
With millions of UK directors expected to go through verification, completing the process early will reduce delays and demonstrate your commitment to good corporate conduct. This reform is not just about compliance, it’s about strengthening transparency, protecting your company’s reputation, and building long-term trust with clients, investors and regulators.
Expert Legal Support
At Penerley Solicitors, we work with company directors, business owners and corporate groups across London and Canary Wharf to ensure full compliance with upcoming Companies House identity verification requirements. Our experienced corporate solicitors can guide you through the verification process, help you prepare the necessary documentation, and ensure that your business meets all governance standards under the new regime.
For clear, practical advice on director identity verification, corporate compliance and company law, contact Penerley Solicitors today.
