Economic Crime and Corporate Transparency: New identity verification requirements

Identity verification is being introduced to enhance the integrity and transparency of information on the Companies House register.

 

This new requirement aims to deter individuals from using companies for illegal activities by ensuring that directors and other key individuals are who they claim to be. By verifying identities, the risk of fraud is reduced, and the accuracy and trustworthiness of the information available to the public is improved.

The following individuals will need to verify their identity:

• Directors
• Equivalent roles to directors (including LLP members, general partners, and managing officers)
• Persons with significant control (PSCs)
• Authorised Corporate Service Providers (ACSPs), also known as Companies House authorised agents
• Individuals who file for a company, such as company secretaries

Identity verification can be carried out through the following methods:

1. Online Verification: with GOV.UK One Login, using a biometric passport, UK photo driving licence, UK biometric residence permit, UK biometric residence card, or UK Frontier Worker permit. If these documents are unavailable, bank or building society details may be used.
2. In Person at a Post Office: If online verification is not possible, individuals living in the UK can verify their identity in person at a Post Office.
3. Using an ACSP: Individuals can engage an ACSP to verify their identity on their behalf.

More details are available here:  Verifying your identity for Companies House - GOV.UK

Timescales for compliance

From 8 April 2025 individuals have been able to verify their identity on a voluntary basis.  It is expected to become compulsory for all new appointments from Autumn 2025 with a 12 month transitional period for existing directors (and equivalent roles) and PSCs who will be required to verify in line with submission of the relevant confirmation statement within that period.   

Generally, an individual will only need to verify their identity once.  Once a person’s identity has been verified, they will receive a unique reference number or personal code, which should be kept safely.  This code will be used to link their verified identity to their roles recorded at Companies House and, as well as reducing the risk of fraud and enhancing transparency, it should ensure a streamlined process for future filings.

Failure to verify will be a criminal offence and/or a civil penalty may be incurred. Companies will also commit an offence and face civil penalties if any of their directors are not verified.

Key preparations for businesses:

Businesses are encouraged to:

• take steps now to identify all those individuals within their organisation, or who form part of their beneficial ownership structure, who will need to verify
• ensure verification is completed in advance of the requirements becoming mandatory (expected Autumn 2025).  This is recommended, in particular, for individuals based overseas or without biometric identity documents as such individuals may need to engage an ACSP if they cannot use the online or in person methods
• build in the verification requirements to their processes for appointing new directors to ensure there will be no delays before such individuals can take office

If you have any questions on the new ID verification requirements, please get in touch with Shoosmiths Company Secretarial Team.