Identity Verification for UK Companies: A Complete Guide

The UK corporate regulatory landscape is undergoing one of its most significant transformations in decades. At the heart of these changes is the move to mandatory identity verification for individuals who set up, run, own or control registered companies in the UK. The reform is driven by the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”), which grants new powers to Companies House, enabling it to require identities of key individuals to be verified before they can act in certain company roles.

For businesses and advisers, this is far more than a procedural tweak. It signals a shift from a lightweight “name & address” filing model to one where individuals must be linked to the legal entity, verified and traceable. Failure to transition will have serious consequences, including the inability to file, civil and criminal penalties and disruption of business operations.

This article explores the reform in depth, covering what the verification requirement is, who it applies to, how it works, deadlines, consequences, practical steps and more.

Key Takeaways about upcoming mandatory identity verification

• From 8 April 2025, individuals can voluntarily verify their identity via Companies House or an authorised third-party. Changes to UK company law+1

• From 18 November 2025, identity verification becomes mandatory for new directors and PSCs of UK companies (and some LLPs). Existing directors/PSCs face a 12-month transition period. Dentons+1

• There are two routes: (1) direct verification via Companies House’s digital service (GOV.UK One Login) and (2) via an authorising agent known as an Authorised Corporate Service Provider (ACSP) — typically accountants, solicitors, formation agents such as 1Office Group Ltd. Changes to UK company law+1

• The obligation covers directors (and equivalents), PSCs, members of LLPs and will extend at a later date to corporate directors, filing agents and other persons. Pinsent Masons+1

• Non-compliance will give rise to offences, filing restrictions, inability to act as director or PSC, and could impede a company’s ability to file documents. Changes to UK company law+1

• Businesses should act now: identify all individuals in scope, initiate voluntary verification to avoid bottlenecks, and ensure verification is completed ahead of confirmation-statement or appointment deadlines.

• Ultimately, the reforms aim to improve the accuracy and integrity of the UK companies register, reduce fraud, enhance transparency, and restore confidence in UK business structures. GOV.UK+1

What is Identity Verification? Defining the New Requirement

Putting it simply, identity verification under the new Companies House regime means that an individual must go through a process of proving that they are who they claim to be, via accepted documentation or recognised verification routes, and receive a unique identifier (personal code) which links them to all their company roles.

From the official guidance:

“Identity verification is a new legal requirement. It will help to deter people intending to use companies for illegal purposes. By law, you will need to verify your identity to confirm you are who you claim to be.” GOV.UK+1

In other words, the era when someone could be named as a director or PSC with minimal identity checks (just a name and address) is ending. Instead, the verification regime places the onus on establishing a verified digital identity tied to company roles.

The Core Principle: Linking a Legal Entity to a Real Person

At its core, the requirement is about creating a clear link between a legal entity (company, LLP, etc) and the real persons who govern or control it. This link is achieved by:

• verifying an individual’s identity against acceptable evidence (photo ID, facial recognition, bank/building-society checks, etc) via the chosen route; GOV.UK

• issuing that individual a unique “personal code” that becomes their identifier for all roles; GOV.UK+1

• requiring that code to be provided when performing certain filings (e.g., annual confirmation statement, appointment of director, PSC registration) so the individual cannot hide behind anonymity. GOV.UK+1

By linking every role to a verified individual, the register becomes more robust — reducing the risk that roles are held by fictitious persons or identity-theft victims, and making it harder for criminals to exploit UK corporate structures.

This shift from largely paper-based “name & address” filings to verified identity is fundamental.

Identity Verification vs. Current “Name & Address” Filing

Under the previous regime, companies and their key roles were subject to relatively light verification: when registering a director, PSC or other role with Companies House, the filing typically required only the person’s name, address (often the service address) and date of birth. There was no universal requirement that the person prove their identity via independent checks.

The new regime changes that dynamic entirely:

In essence: the “who are you?” question is now formalised. The role-holder must prove their identity once (and keep the link to their role via the personal code) rather than just being named.

Who Needs to be Verified? The Two Key Groups

The verification requirement initially focuses on two main groups of individuals associated with UK-registered companies and LLPs.

Company Directors (Existing and New)

“Directors” here means all persons acting in capacity of a director of a UK limited company, including executive and non-executive directors, and equivalent persons for other entity types (for example members of LLPs).

• For new directors (appointed on or after the mandatory date), verification must be complete before appointment or filing.

• For existing directors, they will need to verify their identity during the transition period (typically when filing their next confirmation statement) so that their personal code is recorded. GOV.UK+1

People with Significant Control (PSCs)

“PSCs” are individuals who ultimately own or control a company, typically via thresholds in shareholding, voting rights, right to appoint/remove directors or significant influence/control. Wikipedia

Under the new regime:

• New PSCs (appointed/identified after the mandatory date) must verify identity within a defined timeframe (typically 14 days after being registered) via personal code.

• Existing PSCs will need to verify during the transition period, often tied to the individual’s date of birth month or when the company’s confirmation statement is due. GOV.UK

Relevant Legal Entities (RLEs) and Their Verification

While the initial phase of the reform focuses on individuals, the regime extends later to Relevant Legal Entities (RLEs) — e.g., corporate directors, corporate PSCs, limited partnerships and agents who file on behalf of others.

These further phases mean companies must anticipate additional obligations (both for the entity and for the persons acting on behalf of the entity) beyond the first wave of directors and PSCs. As such, compliance planning must include these later categories.

The Identity Verification Process: A Step-by-Step Guide

Here we break down how the verification process works in practice, along the two routes available.

Option 1: Direct Verification via Companies House

Required Documents and Information

Individuals can choose to verify directly via the GOV.UK One Login service. The process typically involves:

• Providing valid photo ID such as a UK passport or driving licence.

• Undergoing a facial-recognition check or “live capture” of face image, and comparison with the document.

• Internet-based identity verification (in some cases) where individuals without standard IDs may use Post Office in-branch verification or bank/building society checks. GOV.UK

• A valid email address and contact information.

• Once verified, the individual receives a unique personal code from Companies House that ties to their identity.

The guidance states that most individuals with the required documentation should be able to complete the verification in a short timeframe.

The Digital Identity Service Provider Process

When you verify directly:

1. Create or log into your GOV.UK One Login account.

2. Select the Companies House verification service.

3. Provide the required ID documentation and carry out the verification flow (photo ID + face match + possibly additional checks).

4. Receive your personal code once successfully verified.

5. Use this personal code in relevant company filings (director appointment, confirmation statement, PSC registration).

Direct verification is free of charge when done via Companies House itself. It remains valid for all company roles held by that individual — i.e., you don’t need to verify multiple times for separate directorships. Writers Tax

Option 2: Verification by an Authorised Corporate Service Provider (ACSP)

What is an ACSP? (Accountants, Lawyers, Agents)

An ACSP is a Authorised Corporate Service Provider, such as 1Office Group Ltd, that:

• Is supervised under anti-money-laundering (AML) regulation, such as an accountant, solicitor, company formation agent or governance professional.

• Applies to and receives authorisation from Companies House to act as an ACSP from 18 March 2025.

• Is allowed to verify identities of directors/PSCs on behalf of individuals and/or file on their behalf.

Benefits of Using an ACSP such as 1Office Group Ltd for Verification

• Particularly useful for non-UK resident individuals or those without standard UK identity documents, where the direct route may not be suitable.

• The ACSP can manage the verification process end-to-end (document collection, submission, linking of personal code, filing).

• Useful for groups or companies with multiple individuals to verify, offering a bundled service and compliance oversight.

• May provide additional support for complex structures (e.g., multi-jurisdictional directors, corporate PSCs, LLPs) and help coordinate deadlines.

While the direct route is free, ACSP services may incur a fee (depending on the provider). Using an ACSP is optional but may reduce risk for more complex cases.

Key Deadlines and Transitional Periods Regarding Identity Verification: When Must You Act?

Understanding the timeline is critical for compliance planning.

For New Companies and Appointments

• From 8 April 2025: Voluntary verification is available for directors, PSCs and other individuals. GOV.UK

• From 18 November 2025: Verification becomes mandatory for new director appointments and new PSCs of UK companies (and likely LLP members) such individuals will not be able to act (or a company may not be able to file the relevant appointment) unless verification is complete and the personal code provided.

For Existing Directors and PSCs (The “Transition Period”)

• Existing directors must verify their identity when their next confirmation statement is due (after the mandatory date). Typically, this means a 12-month transition period from the mandatory date.

• Existing PSCs who are not directors will have a deadline: they must provide a personal code within the first 14 days of their birth-month following the mandatory date. GOV.UK

• By mid-November 2026, Companies House estimates that some 6 to 7 million individuals will have completed verification.

Impact on Company Formation and Administration

• From the mandatory date, a company cannot incorporate a new director (or accept a PSC) unless verification is complete. Similarly, existing companies should not let a director or PSC role continue without verification, as this may impact their ability to file.

• Confirmation statements filed without the required personal codes for directors/PSCs may be rejected or cause the company to fall into non-compliance.

Given these deadlines, many advisers strongly recommend verifying early (during the voluntary phase) to avoid last-minute rush, delays and potential filing rejections.

Consequences of Non-Compliance: Risks and Penalties

Failure to comply with the identity verification requirement carries significant risks, both for individuals and companies.

Civil Penalties and Financial Consequences

• If a director or PSC fails to verify when required, the company may be unable to file required documents (such as confirmation statements, changes to directors/PSCs) which could lead to default penalties and risk of strike-off.

• Companies House has enhanced powers under ECCTA to reject filings containing incorrect or missing information, or documents submitted by unverified persons. The Guardian+1

• Though early enforcement has been modest, the threat of fines is significant. For example, Companies House has authority to issue monetary penalties or director disqualification. The Guardian+1

Criminal Offences and Legal Liability

• Operating as a director or PSC without having completed verification (where required) may become a criminal offence under ECCTA. The Times+1

• Agents who submit filings on behalf of companies (or fail to register as ACSPs when required) may face sanctions.

• The wider regime ties into anti-money-laundering (AML) regulation: failure to verify identity properly may expose firms or advisers to AML regulatory risk.

Impact on Company Filings and Compliance Status

• Filings submitted by unverified individuals may be rejected, delaying vital transactions (incorporations, director changes, confirmations).

• Companies may face suspension of filing rights or lack of assurance for lenders, investors and counterparties if their directors/PSCs are unverified.

• The reputational risk is material: companies that cannot demonstrate compliance may find themselves excluded from supply chains, investment or banking relationships.

Addressing Common Concerns and FAQs on Identity Verification

Below are some frequent questions companies, directors and PSCs are asking — and the current answers from the guidance.

Data Privacy and Security: How is My Information Protected?

The verification process uses secure digital channels (GOV.UK One Login or approved ACSPs) and is designed to meet UK government data protection standards. GOV.UK+1 Individuals should ensure that they use only the official route (via Companies House or an authorised agent) to avoid scams. The guidance emphasises that you should “not let others use your identity.” GOV.UK

I am an Overseas Director or PSC. How Does This Affect Me?

Non-UK resident individuals may face additional complexity if they do not hold UK photo ID or cannot meet the standard digital route. The ACSP route is particularly useful here. Companies with overseas directors should plan early: check document eligibility, and consider using an ACSP to manage the process.

What Happens if I Lose Access to My Verified Identity?

Once you’ve completed verification and received your personal code, the code applies to all your roles. If you forget or lose the code, you should contact Companies House for guidance – your verification remains linked. The requirement is “one-time” (in most cases) rather than repeated each year.

Are There Any Exemptions from Verification?

While the first wave covers individual directors and PSCs, some categories are phased in later (such as corporate directors, RLEs, filing agents). There is no general exemption for individuals based on size of company or nature of business: the requirement is broad.

How Much Will Identity Verification Cost?

If you use the direct route (via Companies House) the process is free of charge. Using an ACSP may incur fees determined by the agent. An authorized agent like 1Office Group Ltd charges £99.

The Bigger Picture: How Verification Fights Economic Crime

Preventing Fraud and Money Laundering

This reform is not about bureaucracy for its own sake. It is a strategic move to tackle financial crime, money-laundering, fraudulent corporate registrations and the misuse of UK companies for illicit purposes. The government recognises that prior weaknesses in the register (e.g., fake names, shell companies, minimal identity checks) undermined trust. The Guardian+1

By requiring verification, Companies House aims to ensure that those who hold directorships or control companies are identifiable and accountable — making it harder for bad actors to exploit anonymity.

Enhancing Trust and Transparency in the UK Register

A more robust register increases confidence among investors, lenders, business partners and regulators. When all key persons are verified and identified, it becomes simpler to assess risk, conduct due diligence, and trace accountability. The result: improved business environment and potentially lower cost of capital for compliant companies. GOV.UK

So while the requirement may seem onerous to some, the long-term benefit is improved integrity of UK corporate structures.

The Government Consultation: How to Have Your Say

Summary of the Government’s Proposals

The ECCTA and associated secondary legislation (eg, Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2025) set out the high-level framework for verification, registration of ACSPs, and the obligations on directors, PSCs, filing agents and companies.

The proposals include phased implementation, transition arrangements, two verification routes (direct and ACSP), and expanded obligations for RLEs and agents at a later date.

How Businesses and Individuals Can Respond to Identity Verification Requirements

• Engage with the consultation materials and guidance issued by Companies House (via GOV.UK) and professional advisers.

• Corporates and groups should map all individuals in scope (directors, PSCs, LLP members) and identify which route (direct or via ACSP) is most suitable.

• If you act as a formation agent, solicitor or accountant, consider whether you need to register as an ACSP (from 18 March 2025).

• Provide feedback during public consultation periods if specific issues (non-UK IDs, complex ownership structures) pose a burden, so that future details can be refined.

Preparing Your Business for Identity Verification: An Actionable Checklist

Immediate Steps to Take Now

1. Internal audit – Create a register of all current directors, LLP members, PSCs (and proposed new ones), noting which have verified identity and which have not.

2. Document readiness – Ask each individual to prepare valid identity documents: passport/ID card, driving licence, utility bills or bank statements if needed for alternate routes.

3. Select verification route – Decide who will use the direct route (GOV.UK One Login) and who may use an ACSP (especially non-UK residents or complex cases).

4. Schedule verification early – Encourage individuals to verify during the voluntary period (from April) so that by the mandatory date you’re ready.

5. Link personal codes to roles – Once verified, ensure the personal code is correctly entered in the next relevant filing (e.g., confirmation statement, appointment form).

Planning for the Go-Live Date

• Mark on your calendar: 18 November 2025 (mandatory date for new appointments) and relevant 12-month transition period for existing holders.

• For companies whose confirmation-statement dates fall soon after the mandatory date, ensure their directors are verified ahead of the filing deadline.

• Monitor communications from Companies House: you may receive notifications of personal code deadlines for PSCs, especially non-directors. GOV.UK

• If you are a service-provider (e.g., accountant, formation agent) review whether you must register as an ACSP and integrate the verification offering into your service model.

Conclusion: Embracing a More Secure Business Environment

The upcoming identity verification reforms in the UK mark a decisive turning point in company-law compliance. For far too long, the UK companies register has been open to misuse by individuals hiding behind weak verification processes. The changes introduced under the ECCTA and implemented by Companies House set a new standard: individuals must prove who they are before they can govern or control companies.

For businesses, the key message is clear: don’t wait. The verification process is relatively straightforward, the direct route is free, and the earlier you act, the smoother the transition will be. By preparing now—identifying individuals in scope, compiling documents, choosing verification routes, and linking the personal codes—you will reduce risk, avoid future filing problems and enhance your company’s credibility.

In short, identity verification is not just a compliance tick-box—it’s a foundational building block for trust, transparency and resilience in UK corporate governance. Embrace it now, and your business will be better placed for the new era ahead.

Glossary of Key Terms

• ECCTA: Economic Crime and Corporate Transparency Act 2023 – the legislation enabling the new verification regime.

• Companies House (CH): The UK government agency that manages the register of companies (including limited companies, LLPs, etc).

• Director: A person appointed to the board of a company, or equivalent role (including non-executive/alternate/director equivalents in LLPs).

• PSC: Person with Significant Control – an individual with significant ownership or control of a company (often >25% shares, or otherwise influential).

• ACSP: Authorised Corporate Service Provider – a third-party agent (accountant, solicitor, company formation agent) supervised for AML and authorised by Companies House to verify identities.

• Personal Code: The unique identifier issued by Companies House to a verified individual; this code must be used when filing on-line to link their identity to the role.

• Verification Route (Direct): The process by which an individual uses the Companies House/GOV.UK One Login service to verify identity.

• Verification Route (via ACSP): The process by which an authorised agent undertakes the verification on behalf of the individual, often used where the direct route is not viable (e.g., non-UK ID).

Additional Resources and Official Links

• Companies House: “Identity verification – Changes to UK company law” – GOV.UK guidance. Changes to UK company law+1

• Companies House: “Verify your identity for Companies House” – GOV.UK. GOV.UK

• Companies House press release: “Companies House starts to verify identities” (8 April 2025). GOV.UK

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