To tackle fraud and improve transparency, Companies House is introducing a new identity verification process for individuals associated with UK companies. This initiative is aimed at reducing fraudulent activity and ensuring accurate information is maintained on the public register. Here’s what businesses need to know about the phased rollout.
What Is Changing?
From late 2025, individuals setting up, running, owning, or controlling UK companies will need to verify their identities. This new requirement will apply to:
- Directors
- People with Significant Control (PSCs)
- Members of Limited Liability Partnerships (LLPs)
Identity verification will be a mandatory step at key points, such as company incorporation or annual filing deadlines.
Key Implementation Dates
The process will be introduced in phases, giving businesses and individuals time to comply:
Autumn 2025
- New Directors and PSCs: Must verify their identities at the time of company incorporation.
- Existing Directors and PSCs: Will have a 12-month window to complete verification, timed with the company’s confirmation statement deadline.
Spring 2026
- Agents Acting on Behalf of Companies: Anyone filing on behalf of a company, such as solicitors, accountants, or company formation agents, will also need to verify their identity.
How Identity Verification Will Work
There will be two options for completing the identity verification process:
- Directly Through Companies House
Individuals can verify their identities themselves using Companies House’s online system. - Via an Authorised Corporate Service Provider (ACSP)
Agents such as accountants, solicitors, or company formation specialists can facilitate identity verification for their clients.
Why This Matters for Your Business
The introduction of these checks represents a significant shift in compliance for UK businesses. While the goal is to reduce fraud and increase trust in the corporate register, companies should prepare for the administrative and procedural adjustments this will require.
How to Prepare
- Stay Informed: Monitor updates from Companies House to ensure you’re aware of any additional requirements or changes to deadlines.
- Engage a Trusted Advisor: Accountants or solicitors familiar with the process can help streamline identity verification for directors and PSCs.
- Plan Ahead: For existing companies, start gathering the necessary documentation for directors and PSCs to avoid delays when the transition period begins.
This new process aims to strengthen the integrity of the UK’s company registry. While it introduces additional steps for businesses, it’s a move towards greater transparency and reduced risk of fraud.
If you have any questions or need assistance with compliance, get in touch with our team at Cutts & Co Accountancy. We’re here to help you navigate these changes and keep your business on track.
