Identity verification

A new era of corporate transparency

Janak Prajapati, Director, Company Secretarial

In a significant move to enhance corporate transparency and combat economic crime, Companies House is set to introduce mandatory identity verification (IDV) as part of the Economic Crime and Corporate Transparency Act 2023.

This reform aims to ensure that the UK remains a secure and attractive place to do business by preventing fraudulent activities and improving the accuracy of information on the Companies House register.

Why identity verification matters

Identity verification is the process of confirming an individual’s identity using official documents such as passports or driving licences. This measure is critical in preventing the registration of fictitious directors or beneficial owners, thereby reducing the risk of fraud and misuse of corporate structures. With identity-related crime on the rise, IDV is a vital tool in preserving trust and accuracy within the Companies House register.

Implementation timeline

The rollout of identity verification is already underway and will continue in phases through to spring 2026.

18 March 2025
The first phase will allow Trust and Company Service Providers (TCSPs) and other professional service providers, such as accountants and solicitors, to register as Authorised Corporate Service Providers (ACSPs).
25 March 2025
Individuals can start verifying their identity voluntarily and receiving IDV personal codes.
18 November 2025 – Start of the transition period
IDV becomes mandatory for directors, officers, and PSCs for filing confirmation statements, incorporating companies, or making appointments.
18 November 2026 – End of transition period
Existing companies will have a 12-month transition period to comply with the new requirements. During this time, they must provide identity verification credentials for their directors and PSCs when submitting their confirmation statements.
Spring 2026
Reforms will extend to limited partnerships (LPs), making their information more accessible and transparent. Additionally, anyone acting on behalf of a company will need to verify their identity before filing information with Companies House.

Key timelines for PSCs

New PSCs

New PSCs must verify their identity and provide their Companies House personal code within 14 days of being added to the register.

Existing PSCs

If also a director, they must verify as a director during the company’s next confirmation statement, and separately as a PSC within 14 days of that statement date.
If not a director, they must verify their identity within the first 14 days of their birth month.

Overseas entities

During the transitional year (from November 2025), overseas companies registered under the Register of Overseas Entities will be required to submit a verification statement. The exact date for this requirement is yet to be confirmed.

How identity verification will work

Companies House aims to make the identity verification process as straightforward as possible. There will be two main routes for verification.

Verification via ACSPs
Professional intermediaries, such as accountants or legal advisers, can verify identities on behalf of their clients.
Direct Verification
Individuals can verify their identity directly with Companies House using a digital service that links to their primary identity document, such as a passport or driving license.

Implications for UK businesses

The introduction of identity verification is expected to significantly enhance corporate transparency in the UK. By ensuring that the information on the Companies House register is accurate and reliable, businesses can have greater confidence in their dealings with other companies. This reform will also support law enforcement agencies in their efforts to combat economic crime and protect the integrity of the UK’s business environment.

To learn how our Company Secretarial team can support you in navigating these changes and strengthen your compliance framework, please get in touch.