Key Highlights
- New ID rules come into effect on November 18 for companies listed at Companies House.
- All directors and people with significant control must verify their identity by November 2026 or face criminal penalties.
- The Economic Crime and Corporate Transparency Act (ECCTA) of 2023 mandates the new verification process.
- Over one million identities have been verified since April, according to Companies House.
New ID Verification Rules at Companies House: A Year for Compliance
The UK government is stepping up its efforts to combat economic crime and identity theft by introducing new regulations for companies listed at Companies House. Starting on November 18, 2025, directors and individuals with significant control over companies will be required to verify their identities as part of the new rules. Failure to comply could result in criminal offenses carrying unlimited fines and potential imprisonment.
The Impact of the New Rules
According to Andy King, Chief Executive of Companies House, these changes are designed to increase transparency in UK companies while enhancing national security by tackling economic crime. The regulations are part of a broader strategy initiated under the Economic Crime and Corporate Transparency Act (ECCTA) enacted in 2023.
The ECCTA represents the most significant reform of Companies House since its establishment in 1844. Historically, corporate registrations were relatively unregulated, leading to concerns about fraudulent company registrations. In recent years, efforts such as those by the National Crime Agency have highlighted the issue, with over 11,500 fraudulent companies being removed from the register.
Identity Verification Process
The new verification process is straightforward but requires a few steps. The first step involves logging into one’s gov.uk One Login user account. This system will ask questions to determine the best method for identity verification, which can be done through an app, online security questions, visiting a Post Office, or using an authorised corporate service provider (ACSP) like an accountant or solicitor.
Existing documents such as passports and driving licences can be used for this purpose.
Once verified, users will receive a personal code specific to their identity that is separate from the company they are associated with. This code must be used by November 18, 2026, for confirmation statements or when appointed as a director or become a person with significant control (PSC). Companies House has emphasised that early verification is encouraged and advised.
Challenges in Implementation
Despite the clear benefits of improved transparency and security, some challenges remain. For instance, many international company directors are hesitant to adopt the new One Login account. According to Chelsea Chivers, Head of UK Entity Management at Law Debenture, an ACSP helping with verification, there is a significant amount of confusion among directors regarding the new rules.
Research by Censuswide in August found that only half of surveyed directors fully understood the legislation.
Companies House has acknowledged these challenges and stated they are actively contacting companies to provide guidance and support. However, given the tight deadline for compliance, businesses need to prepare well in advance to avoid potential penalties.
Conclusion
The new identity verification rules at Companies House mark a significant shift towards more stringent regulation of UK businesses. While there is room for improvement, these measures are expected to enhance corporate governance and reduce the risk of economic crime. As of November 18, 2025, all listed firms must ensure their directors’ identities are verified by November 18, 2026, or face serious legal consequences.
