Key changes at Companies House: mandatory identity verification explained

In an important step towards strengthening corporate governance and reducing fraud, Companies House is set to roll out a new identity verification process. This measure aims to prevent the misuse of companies for illegal activities and ensure greater transparency in business operations.

To help you stay ahead, we’re breaking down what this change entails and what it means for businesses and individuals involved in UK companies.

Who will be affected?

Starting in Autumn 2025, identity verification will become mandatory for the following individuals associated with UK companies:

• New directors
• Persons with Significant Control (PSCs)
• Members of other entities such as Limited Liability Partnerships (LLPs).

For existing directors and PSCs, there will be a 12-month transition period beginning in autumn 2025 to comply with the new requirements. By spring 2026, the identity verification rule will extend to anyone acting on behalf of a company, such as those filing information with Companies House.

This phased approach allows businesses ample time to prepare and align with the new regulations.

How the identity verification process works

 The identity verification process is designed to be straightforward and secure. Individuals will have two primary options for verifying their identity:

1. Direct verification via Companies House
   You’ll be able to verify your identity through the GOV.UK One Login system. This involves submitting ID documents like passports or driving licenses. A suite of support tools will be made available to guide users through the process.
2. Verification through an Authorised Corporate Service Provider (ACSP)
   Alternatively, you can use an ACSP – an organisation or individual supervised under anti-money laundering (AML) regulations. Examples of ACSPs include:

• • Solicitors
  • Accountants
  • Company formation agents
  • Governance professionals and chartered secretaries

From Spring 2025, AML-supervised firms and sole traders can apply to become ACSPs. They will conduct identity verification checks to the same standard as Companies House. Detailed guidance on the requirements for ACSPs will be published in due course.

 Why this matters

 The introduction of identity verification marks a pivotal shift in how UK companies are managed and monitored. By ensuring that everyone involved in running, owning, or controlling a company is verified, Companies House aims to enhance accountability and prevent fraudulent activity. This change also aligns with broader efforts to combat financial crime and bolster trust in the UK’s corporate ecosystem.

What you should do now

While there’s no immediate action required, it’s essential to stay informed. Companies House will provide updates over the coming months, detailing when each phase of the identity verification process will take effect and how businesses can comply.

By planning ahead and understanding the requirements, businesses and individuals can ensure a seamless transition into this new era of corporate transparency.

We’re here to help

If you’re unsure about how the new identity verification requirements might affect you or your business, or you’re looking to start planning for this change, we’re here to provide clarity. Email us at info@verallo.com or call us on 0203 912 9933.