The introduction of mandatory identity verification by Companies House is a big change for existing company directors in the UK. The new measures, part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), aim to enhance transparency and deter fraudulent activity within UK businesses.

Let’s look at the key impacts on existing directors and what steps they need to take.

What are the new requirements?

From Autumn 2025, all existing company directors will be required to verify their identity with Companies House. 

This is part of a broader reform that also applies to new directors, persons with significant control (PSCs), and those acting on behalf of companies. The verification process will involve confirming personal identity through either:

1. Direct Verification via Companies House, using the GOV.UK One Login service or in-person services like those at the Post Office.

2. Verification Through an Authorised Corporate Service Provider (ACSP), registered with Companies House for anti-money laundering supervision.

Existing directors will have a 12-month transition period starting in autumn 2025 to complete this process, with a final compliance deadline set for autumn 2026.

Key impacts for existing Directors

1. Mandatory Compliance – Directors will need to verify their identity before any filings are submitted to Companies House, including annual confirmation statements. Failure to comply could lead to severe consequences, such as:

• Financial penalties.
• Restrictions on statutory filings.
• Potential disqualification as a director.
• Risk of the company being struck off the register.

2. Integration with Annual Filings – Identity verification will become part of routine filings, such as the confirmation statement. Responsibility will rest with Directors to ensure their verification is completed before these deadlines.

3. Increased Administrative Responsibilities – Directors will need to gather appropriate identification documents (e.g., passport or driving licence) and decide whether to verify directly or through an ACSP. This extra layer of administration is going to take time, so make sure you allow for it! 

4. Enhanced Transparency – The reforms aim to improve the accuracy of information in the Companies House register by ensuring that all individuals associated with companies are verified. This could increase public trust but may also expose directors to greater scrutiny.

What should Existing Directors do?

To prepare for these changes, existing company directors should:

– Understand the Deadlines: Familiarise yourself with the timeline for compliance. Begin verifying your identity as soon as voluntary verification opens on 8 April 2025 to avoid last-minute issues.

– Choose a Verification Method: Decide whether you’ll complete verification directly via Companies House or through an ACSP.

– Prepare Your Documentation: Ensure you have valid identification documents ready for submission.

– Monitor Filing Requirements: Verify your identity well in advance of filing your next confirmation statement after autumn 2025.

– Communicate with Stakeholders: Inform other directors and PSCs within your organisation about these changes and encourage them to act promptly.

Why are these changes coming in?

The reforms are part of an effort by Companies House to tackle economic crime and improve corporate transparency in the UK. By verifying the identities of individuals associated with companies, the government aims to reduce fraudulent activity, prevent misuse of corporate structures, and ensure that only legitimate individuals control UK businesses.

How we fit into the process…

We will need to be registered as an ACSP to file accounts and other documents with Companies House, but we will NOT be able to verify your identity.

We are currently looking at alternate options, but in the meantime recommend that all existing directors verify directly with Companies House sooner rather than later.

Once you’ve verified, you’ll receive a code that will need to be sent to us please.

Conclusion

The new identity verification requirements represent a major shift in corporate governance for existing company directors. They will be a hurdle to overcome, and, in our view, are a requirement to complete and get out of the way as quickly as possible to enable you to get back to the important day to day of running your Company.

As always, if you have any questions around the new requirements, please get in touch. To find out more about the process, click here. Again, we’d strongly recommend getting this done as quickly as you can so you can forget about it (and maybe feel a little smug as the deadline draws closer!).