The Companies House identity verification launch on 8 April 2025 marks a pivotal shift in UK company law. Introduced under the Economic Crime and Corporate Transparency Act 2023, this new requirement is designed to improve the accuracy of the company register and reduce economic crime.
During the current voluntary period, directors, people with significant control, and authorised agents can verify their identities. Full compliance will become mandatory in autumn 2025, and businesses are encouraged to prepare early.
What Is The Companies House Identity Verification Launch And Why Does It Matter In 2025?
The launch of Companies House identity verification on 8 April 2025 represents a transformative moment for the UK’s company registration system.
This service, introduced under the Economic Crime and Corporate Transparency Act 2023, forms part of a wider effort to enhance transparency, deter criminal misuse, and support legitimate business operations.
Historically, individuals could register a company in the UK without any significant identity checks.
This created vulnerabilities within the system, allowing anonymous actors or fraudsters to create shell companies or misrepresent ownership. The new reforms correct this by requiring verified identification of individuals behind UK companies.
The introduction of this verification mechanism empowers Companies House with new enforcement tools.
These include rejecting or removing information associated with unverified individuals and enhancing the reliability of data available on the public register.
This is particularly important in light of growing global concerns around corporate misuse for money laundering, fraud, and tax evasion.
Additionally, the reform aligns the UK with international standards on business transparency, supporting its reputation as a safe place to do business and invest.
Who Needs To Verify Their Identity With Companies House?
Identity verification is required for a wide array of stakeholders associated with UK-registered entities. These include individuals who either hold official roles or are responsible for submitting company information. As outlined by Companies House, the following groups are obligated to complete verification:
- Company Directors: Whether for private or public limited companies, all existing and newly appointed directors will be subject to verification.
- People With Significant Control (PSCs): Individuals who own or control more than 25% of a company, directly or indirectly, must complete the process.
- Members Of LLPs: Partners or members in Limited Liability Partnerships will need to be verified if they exercise control.
- Relevant Filers: Individuals who file documents on behalf of companies, such as company secretaries or agents.
- Corporate Service Providers: Agents or intermediaries that file on behalf of companies are required to verify the identity of their clients and be authorised themselves.
This broad requirement ensures that all individuals associated with the creation and management of companies are properly vetted. It’s estimated that more than six million people will be impacted during the transition year following mandatory implementation.
The government has intentionally launched the service during a voluntary period to allow for an easier adoption curve. Early verification is encouraged to avoid backlogs and ensure smooth compliance once the mandate takes effect in autumn 2025.
How Can Individuals Verify Their Identity With Companies House?
Verifying an individual’s identity for Companies House is now a regulated and essential compliance requirement, particularly for Authorised Corporate Service Providers (ACSPs).
These agents, also known as Companies House authorised agents, must follow a six-step identity verification process, as outlined in Companies House guidance.
Verification can be completed in person, remotely, or by using third-party platforms, but the legal responsibility always remains with the agent.
If the required standards are not met, Companies House may suspend or remove the agent’s authorisation.
Step 1: Collect Required Personal Information
The identity verification process begins with gathering detailed information about the individual. This includes:
| Required Personal Information |
| Full legal name (including any former names) |
| Date of birth |
| Current residential address |
| Address history for the past 12 months |
| Email address |
This data forms the basis for checking documents and confirming the individual’s identity.
Step 2: Obtain Documentary Evidence
Agents must collect documents that support the person’s identity claim and retain these records for seven years.
Copies of the documents do not need to be submitted to Companies House but must be available for audit or investigation if required.
There are two acceptable methods for document checking:
Option 1: Using Identification Document Validation Technology (IDVT)
IDVT allows the validation of cryptographic features on secure documents. This option is only applicable when the technology confirms the issuing authority and document authenticity. Acceptable documents under this method include:
| Accepted Documents (IDVT Required) | Validity Exceptions |
| Biometric or machine-readable passport | Up to 6 months expired |
| UK or EU photocard driving licence | Current |
| EU/Norway/Iceland/Liechtenstein biometric ID card | Current |
| UK biometric residence permit (BRP) | Up to 18 months expired |
| UK biometric residence card (BRC) | Current |
| UK Frontier Worker permit | Current |
Agents must ensure the technology covers all verification steps required. If any steps are missing, they must be completed manually.
Option 2: Manual or In-Person Verification
When verification is done by a person, either in person or remotely, two documents must be reviewed. These must be either:
- Two documents from Group A, or
- One from Group A and one from Group B
| Group A (Photographic ID) | Group B (Supporting Documents) |
| Passport or Irish passport card | Birth or adoption certificate |
| EU biometric ID card | Marriage or civil partnership certificate |
| UK biometric residence permit (BRP) | Non-photographic immigration document |
| UK photocard driving licence | Bank or building society statement |
| UK HM Forces ID card | Utility bill (current address) |
| UK Frontier Worker permit | Council tax statement (current address) |
| Other PRADO-listed ID (e.g., USA Permanent Resident Card) | Social housing rental agreement |
The second document, from Group B, does not require a reference number or expiry date, but it must show the individual’s current address if applicable.
Step 3: Check the Documents Are Genuine
Verification must include an authenticity assessment. If the verification is not done through technology, the person checking must be trained using Home Office best practice. The process involves examining documents for:
- Signs of tampering or damage (particularly in areas displaying personal details)
- Consistency with known document formats
- Validity confirmation through issuing authorities or, if necessary, embassies
Where doubts arise, verification should not proceed until authenticity can be confirmed.
Step 4: Confirm That the Identity Matches the Person
Agents must go beyond document validation and confirm that the identity genuinely belongs to the person being verified. This involves:
| Verification Checkpoint | Description |
| Name and date of birth | Must be consistent across documents |
| Visual likeness | Person should match the photo on the ID |
| Cryptographic checks | If using IDVT, ensure data matches and is machine-verifiable |
| Face-to-photo comparison (remote) | Clear video or image comparison required |
| Evidence of activity (if needed) | Such as recent utility bills or financial statements |
Additional documentation may be needed if there are discrepancies, such as unverified address history or a name change.
Step 5: Maintain Records of the Verification Process
The agent must keep full records of the verification process for seven years from the date it is completed. These records should include:
- Copies of all verified documents
- Evidence and notes on checks completed
- Records of any failed or rejected verification attempts
Even if Companies House is not notified about the failure, these records must still be maintained for compliance purposes.
Step 6: Decide Whether the Identity Can Be Verified
At the conclusion of the process, the agent must make a formal decision:
If satisfied with the verification, the agent must inform Companies House via the online service, providing:
- Personal details of the verified individual
- List and details of the documents used
- Confirmation that all required verification steps were completed
If the agent cannot verify the identity, they are still required to keep records of all efforts made. The individual will need to secure appropriate documents and complete verification before they can:
- Be appointed as a director
- File documents with Companies House
- Act as a person with significant control (PSC)
- Register as an authorised agent
When Does Identity Verification Become Mandatory?
While identity verification services became available from April 2025, they will not become legally mandatory until autumn 2025.
This transition period gives individuals and companies time to familiarise themselves with the new system and begin voluntary compliance.
The government’s approach to rollout is intentionally phased to minimise disruption and avoid a surge in last-minute verifications.
During this time, stakeholders are encouraged to complete verification early to streamline the adoption process.
One of the key implementation strategies is integrating identity verification into the annual confirmation statement. For existing directors, this means they can verify their identity at the same time they update their company’s records.
This integration is designed to reduce administrative duplication and simplify compliance workflows.
Newly appointed directors will need to verify their identity before their appointment is registered. Failure to do so may result in Companies House rejecting the appointment or filing.
What Are Authorised Corporate Service Providers (ACSPs) And How Do They Help?
Authorised Corporate Service Providers play a critical role in enabling identity verification, especially for companies that rely on third-party professionals to handle their filings and regulatory compliance.
ACSPs are entities authorised by Companies House to carry out identity checks on behalf of their clients.
To qualify as an ACSP, a provider must:
- Be registered with a UK supervisory body for anti-money laundering
- Maintain records of all identity checks performed
- Submit verification confirmations directly to Companies House
- Ensure compliance with the identity verification standard
ACSPs simplify the process for businesses by handling both the technical and procedural aspects of verification. For instance, a company formation agent can collect the director’s ID documents, conduct biometric validation, and securely transmit the verification status to Companies House.
This service is especially valuable for businesses operating in regulated industries or with multiple officers who may not be familiar with GOV.UK One Login. It also helps reduce errors, delays, and non-compliance risks associated with self-service options.
Choosing the right ACSP involves considering the provider’s experience, supervisory body membership, and reputation for data security and regulatory accuracy.
How Will These Changes Affect UK Businesses?
The identity verification requirements are expected to have both immediate and long-term implications for businesses across the UK.
While the introduction of a new compliance step may appear burdensome at first, the overall impact is largely beneficial.
Immediate Effects
- Companies must update their internal processes to include identity verification for relevant individuals.
- Legal and administrative teams will need to ensure that new appointments are only made once verification is complete.
- Businesses may incur costs if using ACSPs, although these are often bundled into wider services.
Long-Term Benefits
- The quality and reliability of the Companies House register will improve significantly.
- It will become more difficult for fraudulent entities to operate under false pretences.
- Stakeholders such as banks, investors, and customers will benefit from increased confidence in company data.
These changes are widely supported by professional and regulatory bodies, including the British Chambers of Commerce and the Association of Chartered Certified Accountants. Their endorsements signal strong alignment between regulatory reform and business needs.
Moreover, these reforms help level the playing field by ensuring that all businesses meet the same standard of transparency and accountability.
What Challenges And Support Are Expected During The Transition?
As with any large-scale regulatory shift, the transition to mandatory identity verification will come with a learning curve. Different businesses will experience varying levels of difficulty depending on their structure, familiarity with digital systems, and access to professional advice.
Expected Challenges
- Smaller companies or sole traders may find the process unfamiliar or technically challenging.
- Some directors may resist using biometric verification due to privacy concerns.
- Overseas-based officers could face delays in document processing or system access.
Support Systems
In anticipation of these challenges, several support channels are in place:
- Companies House is offering detailed guidance through webinars, step-by-step instructions, and helpdesk support.
- Professional bodies like ACCA and the Law Society are producing educational content to assist their members and clients.
- Authorised agents are helping businesses complete verifications smoothly as part of their service packages.
The government has also committed to ongoing stakeholder engagement to ensure the policy is implemented with minimal disruption.
Why Is Identity Verification Essential For Corporate Transparency And Economic Growth?
At the heart of this reform is the principle of corporate accountability. By requiring individuals involved in UK companies to verify their identities, the government is addressing longstanding vulnerabilities in the business registration system.
Enhanced Transparency
- Ensures that names listed on the register correspond to real, verified individuals
- Makes it easier to track company ownership and control
- Facilitates due diligence for investors, banks, and the public
Economic Benefits
- Reduces economic crime by making it harder for bad actors to hide behind anonymous entities
- Strengthens the UK’s global reputation for regulatory integrity
- Encourages foreign and domestic investment by building confidence in business data
Organisations like Transparency International and Open Ownership have praised the move as a necessary step toward modernising corporate oversight.
By tightening controls at the gatekeeping level, the reforms reduce opportunities for system abuse while promoting ethical business conduct.
Conclusion
The Companies House identity verification launch in 2025 is a pivotal moment for UK corporate governance.
With over six million individuals expected to verify their identities, the reform marks a determined step toward a safer, more transparent business environment.
While the new requirements may pose challenges, they also offer long-term benefits by reducing fraud, increasing trust, and improving the accuracy of business data.
Companies are strongly encouraged to act now during the voluntary phase to ensure they are well-prepared when mandatory compliance begins in autumn 2025.
FAQs
What is the Economic Crime and Corporate Transparency Act?
It is a UK law passed in 2023 aimed at improving corporate transparency, reducing fraud, and giving Companies House stronger powers to check and verify company-related information.
Will identity verification be a recurring requirement?
No, once verified, individuals typically do not need to repeat the process unless their identity details change or they take on a new role in a different company.
Are foreign company directors also required to verify?
Yes, if they are listed as directors or PSCs of UK-registered companies, they must complete identity verification.
What happens if someone doesn’t verify their identity?
Failure to verify identity once it becomes mandatory may result in Companies House rejecting filings or disqualifying individuals from acting as company directors.
How secure is the GOV.UK One Login system?
GOV.UK One Login uses secure digital technology, including facial recognition and document checks, and meets national identity assurance standards.
Can an agent complete the verification on my behalf?
Only if they are registered as an Authorised Corporate Service Provider (ACSP). They will need your consent and relevant identification documents.
What documents are needed for identity verification?
Typically, you will need a valid passport, driving licence, or other government-issued ID. Facial recognition via smartphone or webcam is also part of the process.
