Introduction
Prepare for a significant shift in Companies House procedures. From Autumn 2025, all company directors and People with Significant Control (PSCs) will be required to verify their identity with Companies House. This crucial change stems from the UK Government’s Economic Crime and Corporate Transparency Act 2023 (ECCTA), a legislative effort designed to bolster the accuracy and transparency of the Companies House register and actively combat economic crime.
If you hold the position of a director or PSC, completing this identity verification process is essential to continue fulfilling your role legally. Failure to comply with this new mandate could lead to serious repercussions, including financial penalties, potential disqualification, and restrictions on your ability to file company information.
Why Is Identity Verification Becoming Mandatory?
These new identity verification rules are being implemented to empower Companies House to definitively confirm the true identities of individuals involved in establishing, managing, or controlling UK companies. This measure is crucial for:
- Preventing the Use of False Identities: Ensuring that fraudulent or fictitious individuals cannot be used to create and operate companies.
- Enhancing Trust and Transparency: Fostering a more reliable and transparent UK business environment for stakeholders.
- Facilitating Enforcement: Enabling Companies House to take more effective action against those who misuse the system for illicit purposes.
Step-by-Step Guide to Verifying Your Identity
You have two primary routes for verifying your identity: directly with Companies House through the government's secure online portal,
Step 1: Gather Your Identification Documents
You will need a current and valid primary identification document. Acceptable forms include:
- Passport
- Driving licence
Ensure that the document you choose is not expired and the details are clearly visible.
Step 2: Complete the Online Verification (Directly)
- Directly via GOV.UK One Login: Navigate to the GOV.UK One Login service is the UK government's secure sign-in service for accessing online public services. Here, you will be guided through the verification process, which typically involves:
- Uploading a clear photograph or scan of your chosen ID document.
- Take a live selfie to enable facial recognition technology to match your identity to the uploaded document.
- Submitting your information through a secure connection.
Step 3: Secure Your Verification Code
Upon successful verification, you will receive a unique verification code.
Crucially: Store this code safely and securely. You will be required to provide this code to your accountant or agent whenever confirmation statements or other filings are submitted to Companies House on your company's behalf. Without this verification code, your filings may face rejection or significant delays. The code acts as confirmation that the individuals involved have had their identities verified.
Step 4: Utilize Your Verification Code for Filings
Whenever your company’s confirmation statement or other relevant filings necessitate identity verification, ensure that you provide your saved verification code to your accountant or the person responsible for submitting the information to Companies House. This code will likely be a required field within the online filing process.
Important Dates and Compliance Timeline
Mark these key dates in your calendar:
- 8 April 2025: Voluntary Identity Verification Opens. Directors and PSCs are strongly encouraged to take advantage of this early window to verify their identity and avoid potential bottlenecks closer to the mandatory deadlines.
- Autumn 2025: Mandatory for New Appointments. Identity verification becomes a mandatory step for all newly appointed company directors and PSCs at the point of incorporation or appointment.
- Autumn 2026: Existing Directors and PSCs Must Verify. A 12-month transition period will commence, during which all existing directors and PSCs must complete the identity verification process.
Failing to complete the verification process by the applicable deadline can result in significant penalties and operational restrictions for both the individual and the company.
Consequences of Non-Compliance
Failure to verify your identity as required can lead to several serious penalties:
- Criminal Fines: Potentially unlimited financial penalties imposed through the criminal justice system.
- Civil Penalties: Fines issued directly by the Registrar of Companies.
- Filing Restrictions: Inability to submit statutory filings to Companies House, potentially leading to further compliance issues.
- Public Record Annotation: A public note may be added to the Companies House register indicating an unverified status, which can negatively impact the company's reputation and credibility.
- Director Disqualification: Potential disqualification from acting as a company director in the future.
Navigating the New Requirements
Understanding and complying with these new identity verification requirements is crucial for all company directors and PSCs. While the process itself requires individual registration through the GOV.UK One Login service
At Cadre Advisory, we can provide valuable guidance to help you understand the new regulations, prepare the necessary documentation, and ensure you are aware of all your obligations. We can clarify the steps involved in the self-registration process and help you stay informed about any further updates from Companies House.
Don't risk penalties or delays by being unprepared. Contact Cadre Advisory to gain a clear understanding of your responsibilities and ensure a smooth transition to these new identity verification requirements. We're here to guide you through the process, even as you complete the registration yourself.
