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Companies House has always been a passive collector of information about companies. For decades, it operated on a system of trust whereby individuals could form companies without detailed checks upon their identity. The lack of scrutiny created weaknesses in the system—some companies were being registered under false names, false addresses, and even directors by pseudonymous names derived from popular culture.
Companies House will bring in identity verification requirements under the Economic Crime and Corporate Transparency Act 2023, with mandatory checks to be phased in later this year. It is based on the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which aims to enhance transparency and combat financial criminality across the UK. The core idea behind these new regulations is to guard so that whoever stands behind a UK-registered business is exactly who they say they are.
Why It Was Necessary: Countering Fraud and Restoring Confidence
Among the most pressing reasons behind the introduction of the new identity verification system is the rising exploitation of UK businesses for criminal activity. Unnamed directorships have facilitated criminal players to form shell companies, conceal ownership, and launder criminal funds—facilitating tax avoidance as well as more widespread economic crime.
With the implementation of obligatory identity checks, Companies House identity verification will stop these activities and make individuals have faith in the UK company register. The register is now going in the direction of an active gatekeeper, verifying who is behind the company instead of taking information at face value.
This reform brings the UK into line with international standards of anti-money laundering and corporate transparency. It also responds to growing public and regulatory demand for precise, verifiable data on the Companies House register.
How Identity Verification Works
Under the new rules, individuals will need to establish their identity before they are able to form a new business, become a director, be a Person with Significant Control (PSC), or file documents on behalf of a company. There are two pathways mainly to achieve this task:
- Through the Government’s One Login system, where users are able to verify themselves using a biometric passport or other secure means of identification.
- Through an Authorised Corporate Service Provider (ACSP), such as accountant, solicitor, or company formation agent, who can carry out the verification process on behalf of their clients.
Following verification, an individual is issued with a unique code that can be used in all subsequent Companies House dealings. This is a one-time procedure, even if the individual has dealings with multiple companies.
Who Needs to Verify and When
Phase-by-phase introduction of compulsory identity verification is taking place. There was a preliminary phase of voluntary verification starting in April 2025 to enable adaptation on the part of companies. From autumn 2025, the following will be mandatory by law:
- New directors and PSCs at company incorporation
- Existing directors and PSCs when they submit a confirmation statement
- Anyone submitting documents on behalf of a company
Finally, by spring 2026, only authorised persons or filing on behalf of ACSPs may submit company filings. Companies House is offering a long lead-in period to minimise disruption and allow individuals and businesses to make the transition easily.
What Happens If You Don’t Comply?
Not verifying your identity will have immediate consequences. Individuals who fail to go through the process will not be allowed to be company directors, be PSCs, or file with Companies House. Furthermore, repeated failure to comply could lead to financial penalties and even criminal acts.
The rules on identity verification aren’t so much about the accuracy of data—about enforcement, in fact. Companies House now has more robust powers to investigate, refuse inaccurate filings, and delete false entries from the register. Already, tens of thousands of dubious company names and addresses have been removed as part of this wider crackdown.
A Necessary Step Toward a Transparent Future
For most legitimate businesses, this will be an added bureaucratic barrier. But the long-term benefits are considerable. These reforms seek to make the UK a safer, more transparent place to do business—a place where companies are held accountable and fraud is less likely to get lost in the system.
The transition to identity verification is a major cultural transformation in the operation of Companies House. Instead of being a passive repository-keeper, it is transforming into an active regulator committed to making certain that the UK’s business scene is fraud-free and abuse-free.
Conclusion
Previously, the simplicity of business setup in the UK—though an asset—also proved to be a weakness. With the advent of identity verification, Companies House is shifting this balance. It is retaining the openness of the system while enhancing accountability at its foundation.
These reforms are not simply about catching the crooks but about supporting the honest majority. Businesses that play by the rules will benefit from a more secure and trusted register. This additional check of verification in the coming years will be a foundation for better compliance, stronger oversight, and confidence in UK businesses renewed.
