The new Companies House identity verification process: What you need to know

Companies House is soon to introduce a new identity verification process, whereby anyone setting up, running, owning or controlling a company in the United Kingdom will need to verify their identity going forward. The incoming changes follow the introduction of the Economic Crime and Corporate Transparency Act in 2023 and are being implemented in an effort to deter the abuse of company structures by improving transparency. This initiative aims to enhance the accuracy and reliability of the UK’s company register by ensuring that individuals who set up or control companies are genuinely who they claim to be.

Who needs to verify their identity?

In the future, the identification process will apply to the following individuals:

• new directors and persons with significant control (“PSCs”), as part of the company incorporation process;
• existing directors and PSCs, with the identification checks to be undertaken within a set time after the rules are in force; and
• corporate agents, who will need to verify their identities before submitting filings on behalf of clients.

Methods of verification

As outlined in The Registrar’s Identity Verification Rules 2025, applications for verification must be submitted using one of the approved methods. There are two main ways to complete the identity verification, namely through:

• direct verification through Companies House, by way of uploading copies of certain approved identity documentation (for example, biometric passports or driving licences) to GOV.UK’s “One Login Check” app, going through GOV.UK’s “One Login” web service or filing the documents in person at a designated Post Office; or
• an Authorised Corporate Service Provider (“ACSP”), such as accountants, solicitors, company formation agents, chartered secretaries or governance professionals, who have themselves completed the identification process and are supervised within the United Kingdom by one of the relevant Anti-Money Laundering supervisory bodies.

In addition to providing the necessary ID documentation by the relevant deadline, applicants must also supply accurate personal information and authenticate their identity by answering security questions. This ensures their identity is correctly linked to their personal details, including their full name (as well as any former names), residential address (and, in some instances, previous home addresses), date of birth, and a valid e-mail address.

Direct verification will only be available to individuals who hold a biometric passport or documentation issued in certain countries (with the web service being limited to individuals with UK documents), and anyone without such documentation will need to verify via an ACSP.

Timeline for implementation

The new system will be implemented on a phased approach as follows:

• ACSPs will be able to register from 25 February 2025;

• individuals will be able to voluntarily verify their identity from 25 March 2025;

• by Autumn 2025, identity verification will be made compulsory for new directors and PSCs when incorporating a new company, and a twelve-month transition period will begin in respect of existing directors and PSCs;
• by Spring 2026, identity verification will be required for presenters and third-party agents filing on behalf of a company (who must also register as an ACSP); and
• by the end of 2026, the transition period will be completed and Companies House will begin compliance activity against those who have failed to verify their identity as required.

Implications for businesses

In summary, the new rules aim to:

• enhance corporate transparency by guaranteeing that all individuals involved in company operations are properly verified and reduce the risk of fraudulent activities by ensuring that only verified individuals can act as directors or PSCs; and
• improve the accuracy of company information and strengthen compliance by requiring companies to adapt their internal processes to comply with the new verification requirements.

Failure to comply with the identity verification requirements will be considered an offence and subject to a range of consequences including financial penalties and restrictions on filing documents or starting a new company. The new identity verification process represents a significant step toward enhancing the integrity and transparency of the United Kingdom’s company register. It is crucial for both businesses and individuals to stay informed about the upcoming changes and prepare accordingly to avoid any unnecessary penalties for non-compliance.

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