Big Changes as Companies House Starts to Verify Identities
The UK is taking a monumental step in its fight against corporate fraud. With the launch of new identity verification rules, Companies House starts to verify identities—a pivotal move ushering in an era of increased transparency, trust, and accountability in business. This initiative, rolled out under the Economic Crime and Corporate Transparency Act, represents one of the most significant updates in the history of UK company law.
Let’s explore what these changes mean for business owners, directors, and the wider economy—plus how they align with the government’s broader crackdown on economic crime.
Why Is Companies House Verifying Identities Now?
The UK has long faced criticism for being a playground for anonymous companies—used for everything from tax evasion to organised crime. Following high-profile investigative reports and political pressure, this identity verification measure aims to close those loopholes.
By verifying identities, the UK government is restoring trust in its business ecosystem. It reassures the public and investors that corporate records are accurate, traceable, and verifiable.
The Role of the Economic Crime and Corporate Transparency Act
Passed in 2023, the Economic Crime and Corporate Transparency Act is a legislative backbone behind this change. Its aim is to strengthen the UK’s ability to tackle financial crime, from money laundering to corruption. By giving Companies House enhanced powers to verify and monitor company information, it’s essentially transforming the Registrar from a passive repository into a proactive gatekeeper of corporate integrity.
Who Will Be Affected by Identity Verification Requirements?
Here’s a quick look at who must comply:
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All new directors and Person with Significant Control (PSCs) of companies, LLPs, and limited partnerships
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Existing directors and Person with Significant Control (PSCs) (they’ll need to verify by a specific deadline)
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Agents, such as accountants or solicitors, filing on behalf of clients
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Presenters, the individuals submitting documents to Companies House
Even if you only file documents occasionally, you’re required to prove who you are.
How the New Process Works for Identity Verification
Identity verification will happen either through:
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A new digital service provided by Companies House
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An authorised corporate service provider (ACSP)—such as a registered agent or accountant
The process is simple but secure. You’ll upload identification documents and perhaps a short real-time video or photo to confirm liveness. This helps ensure you’re a real person—not just a passport scan.
Approved ID Verification Providers: What to Know
Only authorised ACSPs that are supervised for anti-money laundering purposes can verify someone’s identity. These providers must register with Companies House and display transparency in how they carry out ID checks. That way, the government ensures no shady third-party services slip through the cracks.
The Timeline for Implementation of ID Checks
While the law is now in force, the full rollout will take place in phases. Here’s what to expect:
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New company formations: ID checks are immediate
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Existing directors/PSCs: transitional period, likely up to 12 months
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Filing agents: ongoing compliance monitoring
Companies House will notify businesses directly, giving them time to prepare.
FAQs
What is Companies House identity verification?
It’s a legal requirement under UK law for company directors, Person with Significant Control (PSCs), and agents to verify their identities using secure digital methods.
Who needs to verify their identity with Companies House?
All new and existing directors, people with significant control, and agents filing on behalf of a company.
Is identity verification mandatory for all companies?
Yes, unless explicitly exempt. Most companies and partnerships registered in the UK must comply.
What happens if someone fails to verify their identity?
They may be disqualified from acting as a director or filing official documents. Companies may also face penalties.
Can I use an accountant to verify my identity?
Yes, if they are an authorised corporate service provider registered with Companies House.
Will this affect company formations or take longer to register a new business?
Initially, yes. Verifying identities adds a step, but it ensures only genuine individuals can register companies.
