Companies House Identity Verification Process for Directors & PSC
Companies House has introduced a new identity verification process whereby anyone setting up, running, owning or controlling a company in the UK must verify their identity, as newly prescribed.
The new requirements arise from The Economic Crime and Corporate Transparency Act 2023 (‘the ECCTA’), which forms part of a wider government initiative to improve transparency and reduce the potential misuse of corporate structures for the commission of financial and economic crime.
The intent is to enhance the quality and accuracy of the data recorded on the UK Register of Companies, which is maintained by Companies House.
The changes are being introduced on a staggered basis and, when fully implemented, will substantially affect the reporting obligations of new and existing company directors, new and existing persons of significant control, and members of a limited liability partnership.
At present, identity verification requirements apply only to individuals, although these requirements are likely to be extended in the near future to encompass other areas of corporate activity.
Failure to comply may result in both substantial fines and other enforcement action. It is therefore essential that those involved in all forms of corporate business fully understand the changes.
John Veale a Partner at KANGS explains changes to the Companies House identity verification process introduced by the ECCTA and which become operative by amendments to the Companies Act 2006 (‘the Act’).
Mandatory Identity Verification
Directors and LLP members
Section 167M of the Companies Act 2006, prohibits an individual from acting as a company director unless their identity has been verified.
Accordingly, all new directors and LLP members must verify their identity in advance of incorporating a new company or appointment to an existing company.
The changes are being implemented on a staggered basis and by the 2nd December 2026, all directors must have completed verification, except where an extension of time may have been granted.
Persons of Significant Control
Requirements similar to those shown above apply to Persons of Significant Control (PSCs).
Section 790LM of the Companies Act 2006 provides that, newly registered PSCs must verify their identity within fourteen days of a company’s incorporation. Whilst section 790LP provides that existing PSCs must complete verification by a date set by the Secretary of State.
A PSC is someone owning more than 25% of a company or having more than 25% of its voting rights exercising significant control or being able to appoint or remove directors.
Verification Requirements
The Secretary of State has the power to determine the manner in which identity verification is conducted.
The Act states:
S. 1110B Verification requirements
The Secretary of State may make provision for and in connection with verification or reverification of an individual’s identity by the Registrar or by an authorised corporate service provider.
The Secretary of State may make provision about:
- the procedure for verifying or reverifying an individual’s identity, including the evidence required,
- the records that a person who is or has been an authorised Corporate Service Provider is required to keep in connection with the verification or reverification of an individual’s identity.
The Secretary of State has stipulated verification requirements through the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2025.
Procedure for Verification of Identity
Verification of identity at Companies House can be achieved as follows:
- Directly through GOV.UK using the ‘Verify your identity for Companies House’ service.
Individuals can verify their identity via an app, online using approved documents such as a biometric passport or UK photo driving licence, or in person at a participating Post Office.
- Using an Authorised Corporate Service Provider.
An Authorised Corporate Service Provider ( ‘ACSP’) such as an accountant or a solicitor is able to verify an individual’s identity. Application can be made from any country but the agent must be registered at Companies House and with a UK Anti-Money Laundering supervisory body.
Verification is completed on an individual basis. Once successfully verified, a unique identifier known as a Companies House personal code will be issued which will be required when the individual, for example:
- files a Confirmation Statement,
- is appointed as a director of another company,
- becomes a Person with Significant Control.
Consequences of Failing to Verify
As the time periods stipulated for varying filing requirements may be the cause for confusion whilst they filter into the system, Companies House has been allowing a transitional period for compliance. However, it has indicated that active enforcement for non-compliance is expected to begin towards the end of 2026.
The ECCTA has introduced a variety of new criminal offences for non-compliance where, for example:
- an individual acts as a director without being verified,
- a company allows an unverified individual to act as a director,
- a Person of Significant Control fails to comply with ID verification without a reasonable excuse.
Companies House has stated that in the future it will publish a note against the name of defaulters on the Companies House Public Register and emphasises that those in default will be unable to:
- be appointed as a new director to an existing company,
- register a new company or entity,
- register as an Authorised Corporate Service Provider.
How Can We Help?
The introduction of mandatory identity verification marks a significant shift in UK corporate regulation and will introduce wide ranging implications.
Businesses should act now to ensure that directors, PSC, and LLP members are aware of their obligations and are prepared to comply with the new requirements. Additionally, an assessment of all compliance requirements may be prudent together with a detailed review of all information currently filed at Companies House.
The team at KANGS team have extensive experience supporting individuals and companies undergoing investigation and prosecution by Companies House for violations and breaches across all areas of Company Law. If you need legal advice, guidance or representation, please do not hesitate to contact our team using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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