More than 6 million people in business must now verify their identity

Following major reforms introduced under the Economic Crime and Corporate Transparency Act 2023, more than 6 million people involved in UK businesses will now need to verify their identity with Companies House. The new identity verification process, currently in a voluntary phase, will become mandatory from autumn 2025 and is aimed at improving transparency, enhancing trust, and combating economic crime.

More than 6 million people in business will need to verify their identity with Companies House over the next 18 months. The voluntary period for identity verification has now opened and the process will become compulsory later this year. Individuals can verify their identity directly with Companies House or through an Authorised Corporate Service Provider (ACSP).

The introduction of identity verification is one of the key changes to UK company law under the Economic Crime and Corporate Transparency Act 2023. This landmark legislation gave Companies House new and enhanced powers to help disrupt economic crime and support economic growth. Identity verification is designed to provide more assurance about who is setting up, running, owning and controlling companies in the UK. There will be the same level of assurance whether individuals are verifying their identity directly with Companies House or through an ACSP.

Companies House CEO Louise Smyth CBE said: “We expect identity verification to become mandatory from autumn 2025. It will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register. To save time later, we encourage directors, people with significant control of companies (PSCs) and those filing information with Companies House to verify their identity during the voluntary window. To reduce the burden on business, the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process.”

The Minister for Employment Rights, Competition and Markets, Justin Madders MP, said: “This is good for business, lenders and transparency and will give companies, consumers and lenders more certainty about who they are doing business with.”

The Law Society of England and Wales Company Law Committee said: “The Law Society of England and Wales has been working closely with Companies House on the development of the new procedures for identity verification. We are pleased that Companies House is introducing the procedures on a staggered basis, which will give companies and LLPs the option to ensure their directors (or, in the case of LLPs, members) and PSCs complete the necessary checks ahead of time if they wish.”

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