In a significant step to improve corporate transparency and bolster fraud prevention, Companies House has confirmed that starting 18 November 2025, identity verification will become a legal requirement for company directors and persons of significant control (PSCs). This initiative, part of the Economic Crime and Corporate Transparency Act 2023, represents a decisive step toward establishing a more secure and reliable Companies House register.
Phased Implementation Over a Year
Rather than imposing an abrupt mandate, Companies House will phase in the new requirements over a 12-month transitional period. From the launch date:
- New directors will need to verify their identity prior to incorporating a business or being appointed to an existing one.
- Present directors must complete verification by the time they submit their next annual confirmation statement.
- Existing PSCs will also require to verify within a specified period attached to their role or birth month if not a Director within the year that follows the November launch.
This deliberate rollout is meant to ease adaptation and ensure widespread compliance, with 6 to 7 million individuals expected to complete the process by mid-November 2026.
The Significance: Trust, Protection, and Data Quality
At the heart of this effort lies a clear goal, to enhance the accuracy and credibility of the UK business registry. Companies House CEO Louise Smyth CBE emphasized that the verification process will improve the integrity of the register and clamp down on misuse ultimately offering greater guarantee to stakeholders.
From a broader perspective, Competition and Markets Minister Justin Madders MP highlighted the economic rationale – credible identity verification reinforces investor and consumer confidence, underpinning both investment and growth.
Verification Process: Accessible Pathways
Companies House offers two primary ways to complete identity verification:
- Free and digital-friendly via GOV.UK One Login, an evolving system that allows users to confirm their identity online within minutes.
- Through an Authorized Corporate Service Provider (ACSP), who perform verification to the same standards, offering an alternative for those preferring intermediary assistance.
Once verified, individuals will receive a personal verification code and must use it, along with a signed statement confirming their identity, when filing for each company role.
Staying Informed
After 18th November 2025, directors and PSCs can view their specific verification deadlines directly in the Companies House register, providing clarity and reducing the risk of missed deadlines.
Meanwhile, Companies House has committed to proactively contacting companies with guidance and support, motivating early compliance to avoid any bottlenecks.
Risks and Challenges: From Technical Glitches to Additional Costs
The rollout isn’t without challenges. News outlets caution that some professionals, particularly accountants and law firms have started charging between £45 to £250 for a process that, when done independently, only takes minutes.
Such costs can deter compliance, especially amid concerns over technical issues or confusion among directors, some of whom have reported difficulties logging in or navigating the verification steps.
Additionally, non-residential overseas directors may face added hurdles around non-biometric documentation and time zone differences, making proactive verification even more crucial.
The consequences of non-compliance are severe. Failure to verify can lead to fines, disqualification, prevented filings, and even company dissolution, highlighting the importance of taking timely action.
The Broader Picture: The Fight Against Fraud and Fake Registrations
This should be combined with ongoing systemic concerns around misuse of the company registry, including fraudulent appointments and fake names like “Darth Vader” or “Santa Claus”, and the identity verification scheme emerges as a crucial tool in the battle against economic crime.
Investigations have already led to the removal of hundreds of thousands of dubious and fake entries, but stronger verification is expected to further deter sophisticated fraud networks.
This is a defining moment for corporate governance in the UK, a shift from a system that previously depended heavily on trust, to one grounded in verified identity. While the transition involves logistical and technical challenges, the long-term benefits in transparency, reliability, and investor confidence are profound.
The message is crystal clear, individuals should verify their identity early, ideally before November 2025. Access is free via GOV.UK One Login, and support is available through ACSPs if needed. Waiting until the final months will surely lead to confusion, delays, and increased costs.
By embracing this change, businesses and individuals will not only comply with law but also help build a register that genuinely reflects who runs, controls, and owns UK companies, thereby protecting the foundation of the country’s corporate integrity.
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