Get ready for identity verification at Companies House: What you need to know

18 November 2025 marks the start of a 12-month transition period in which identity verification will become mandatory for directors, people with significant control (PSCs) and those filing on behalf of UK companies and other entities at Companies House.

It’s part of a broader change under the Economic Crime and Corporate Transparency Act (ECCTA), aimed at tackling misuse of UK company structures. For compliance professionals, this marks a major shift and an opportunity to bring onboarding and entity checks in line with new standards.

Here’s what you need to know now and how to start preparing.

Who will need to verify their identity?

From 18 November 2025, the following individuals will be required to complete identity verification:

• New directors will need to verify their identity to incorporate a company or be appointed to an existing company.
• Existing directors will need to confirm they have verified their identity at the same time as they file their next annual confirmation statement, during the 12-month transition period.
• Existing people with significant control (PSCs) will need to verify their identity in line with an appointed day within 12 months of the commencement of mandatory identity verification on 18 November.
• Members of LLPs and other registrable entities
• Anyone filing information with Companies House (unless using an authorised agent).

How will identity verification work?

There are two ways to get verified:

1. Directly with Companies House

Individuals will submit a photo of their ID and a selfie using the official GOV.UK application form. Identity verification through GOV.UK One login is free and can be completed online.

2. Through an Authorised Corporate Service Provider (ACSP)
A regulated entity (such as a law firm, accountancy firm, trust and company formation agent, or company service provider) registered with a supervisory body will carry out verification and report the result to Companies House.

To act as an ACSP, your firm must:

• Register with Companies House as an authorised agent
• Be supervised under the Money Laundering Regulations
• Perform customer due diligence on the individuals and entities you are currently working with
• Keep records for five years after verification

What about entities from overseas?

Foreign-based directors and PSCs of UK companies will also need to be verified. If they cannot use the Companies House digital service, they’ll need to go through an ACSP.

This is particularly important for firms working with international clients or group structures. It creates both a compliance requirement and a potential onboarding hurdle, especially where access to verified IDs or passports is limited.

What happens if someone doesn’t verify?

Companies House will have new powers to enforce compliance. These include:

• Annotating Companies House to show someone hasn’t verified
• Removing filings made by unverified individuals
• Imposing financial penalties
• Prosecuting non-compliance

In short, directors and PSCs who fail to verify may lose the ability to act, and companies could find themselves unable to file or update statutory information.

What does this mean for compliance teams?

If a director, PSC or other relevant person in your client base fails to verify within the required timeframe, you’ll need to:

• Escalate internally: Flag the risk to senior management or your MLRO, as this could indicate higher risk.
• Pause related filings: Companies House may reject submissions made by or on behalf of the unverified individuals.
• Reassess the client relationship: Continued non-compliance could breach your regulatory obligations under the Money Laundering Regulations.
• Document your actions: Maintain a clear audit trail showing the steps taken to notify, chase, and escalate the issue.

If the individual refuses or is unable to complete verification, you may have to pause work connected to that person until verification is complete. In higher-risk situations, you may need to consider terminating the engagement.

What’s the timeline?

The ID verification requirement will go live on 18 November 2025. From that point, any new company incorporations or filings must involve verified individuals.

For existing entities, a transition window will follow. Companies House has indicated that deadlines will be “phased in”, and further details are expected closer to the go-live date.

What should compliance teams do now?

While we’re still over a year out from the formal rollout, compliance teams can, and should, start preparing:

• Review your client base
  Identify existing directors and PSCs who may need support with verification, especially international individuals.
• Review internal processes: Understand whether your firm intends to become an ACSP, and what steps you need to take to comply. This would involve: 
  • Checking if your AML supervision status and policies meet the ACSP registration requirements
  • Setting up workflows for capturing and storing ID verification documents and evidence
  • Allocating responsibility for submitting verification results to Companies House
  • Updating onboarding checklists to include verification steps for new directors/PSCs
  • Building in reminders and follow-ups for pending verifications
    
    
• Prepare for increased onboarding complexity
  Start thinking about how this change intersects with your existing KYC/CDD obligations and whether your current tools are fit for purpose.
• Communicate with clients early
  Many clients may not know about the upcoming ID verification rules. Start educating them now: explain what verification involves, who needs to comply, and any documents they’ll need to provide. Early communication helps avoid delays, reduces last-minute stress, and ensures filings aren’t blocked.

For further reading, see the resources below:

• Policy paper: Economic Crime and Corporate Transparency Act: outline transition plan for Companies House
• Press release: identity verification rollout from 18 November 2025
• Guidance: When you need to verify your identity for Companies House and Verifying your identity for Companies House