As part of the UK government’s broader efforts to combat economic crime and improve corporate transparency, Companies House has introduced a new identity verification (“IDV”) system for company directors, LLP members and persons of significant control (“PSC”). This change, mandated by the Economic Crime and Corporate Transparency Act 2023 (the “Act”), marks a significant shift in how businesses are registered and maintained in the UK.
The rollout of the mandatory IDV began on 18 November 2025. It is expected that more than 7 million individuals will be required to verify their identity with Companies House.
Key changes:
As of 18 November 2025:-
- New directors will need to verify their identity in order to incorporate a company or be appointed as a director;
- Existing directors will need to confirm that they have verified their identity when filing the company’s next annual confirmation statement;
- Individuals who become a PSC from 18 November 2025 will need to provide their ID Number to Companies House within 14 days of being added to the Companies House register.
- For individuals already registered as a PSC on 18 November 2025, the deadline to evidence their ID Number to Companies House will depend on whether the PSC is also a director of the same company. So,
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- A PSC who is also a director of the same company will need to provide their ID Number to Companies House twice: once as a director on the company’s annual confirmation statement and again as a PSC through a different service (within 14 days of that company’s annual confirmation statement).
- A PSC who is not a director of the same company will need to provide their ID Number to Companies House within the first 14 days of the month of their birth. So, for example, if the PSC’s date of birth is shown on the register as July 1980, the 14-day period will start on 1 July 2026.
Purpose of the changes
The Act grants Companies House new and enhanced powers to disrupt economic crime. The IDV system is an attempt to clamp down on fraud, money laundering and misuse of corporate structures. For some time, critics have highlighted how easily criminals could create UK companies anonymously. The IDV process is therefore designed to:
- Ensure that any person who is required to deliver a document to the registrar does so;
- Ensure the information contained in the register is accurate and transparent;
- Ensure records kept by the registrar do not create a false or misleading impression to the public; and
- Deter criminals from using corporate structures for illegal or illegitimate purposes.
While the IDV is an additional administrative step, it represents a significant move towards a more transparent business environment. Although it introduces new responsibilities, its purpose is to enhance the integrity of the register.
Consequences of delaying or failing to comply
Failure to comply with the IDV requirements may lead to several consequences, including:-
- the company being unable to make any further filings at Companies House;
- an individual being unable to take office and act in their intended official capacity;
- public censure by Companies House; and
- possible criminal and civil penalties under the Act or disqualification proceedings against individuals.
What does this mean for you?
We recommend starting the IDV process early and completing it well in advance of the relevant deadlines to avoid potential technical issues or delays. Failure to verify your identity on time may result in setbacks to company formations, transactions, appointments and document submissions.
The IDV is a one-time requirement and should only take 5-10 minutes to complete. There are a number of different ways of confirming your identity and you can select the method most suitable for you.
Link below:
Verify your identity for Companies House – GOV.UK
If you hold multiple roles across different companies, be conscious that you may face several compliance deadlines over the next coming weeks.
Get in touch with your usual contact here at Brecher if you have any questions regarding these changes.
This update is for general purpose and guidance only and does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. No part of this update may be used, reproduced, stored or transmitted in any form, or by any means without the prior permission of Brecher LLP.
