Companies House Identity Verification Rules Explained

For years, Companies House has largely operated as a passive registrar — accepting information at face value and relying on businesses to submit accurate records. However, in recent years this has been changing, and quickly!

Under the Economic Crime and Corporate Transparency Act (ECCTA), Companies House is being transformed into a far more proactive organisation, with stronger powers to challenge information, reject suspicious filings, and verify the identities of the people behind UK businesses.

At the centre of these reforms is mandatory identity verification.

From late 2025 onwards, millions of company directors and People with Significant Control (PSCs) will be legally required to verify their identity with Companies House. And while this may sound like another layer of admin, the reality is much bigger than that. These changes represent one of the most significant overhauls to UK company law in decades.

For business owners, directors, accountants, and advisers, the key question is no longer if these rules will affect you — it is how prepared are you to deal with them?

At QAccounting, we’re already helping clients navigate the practical side of the changes, from understanding verification deadlines to ensuring company records are compliant before enforcement ramps up. Because while HMRC and Companies House are positioning this as an anti-fraud initiative, for businesses it’s ultimately about staying compliant, avoiding disruption, and keeping filings running smoothly.

 

What Are the New Companies House Identity Verification Rules?

The new rules require certain individuals connected to UK companies to prove their identity directly with Companies House.

The reforms are part of the Economic Crime and Corporate Transparency Act 2023, legislation designed to improve the accuracy of the Companies House register and reduce the misuse of UK corporate structures for fraud, money laundering, and economic crime.

Under the new framework, Companies House will no longer simply accept information submitted to it without question. Instead, it will verify that the individuals forming, running, owning, or controlling companies are genuine people with validated identities.

Identity verification can be completed either:

• Directly by you via a GOV.UK One Login, or
• Via an Authorised Corporate Service Provider (ACSP), such as an accountant, solicitor, or company formation agent authorised to carry out verification checks

Note – QAccounting (as an authoirsed ACSP) are able to perform this process on behalf of our clients, and we are also able to assist other accountants and individuals if they have had trouble completing this process on their own.

Once verified, individuals receive a unique personal code from Companies House. This code is then linked to the various company roles they hold.

Importantly, for most individuals, verification should only need to happen once.

 

Why Are These Changes Being Made?

The short answer? Because the current system has been too easy to abuse.

For years, critics have argued that Companies House lacked meaningful verification controls. Fraudulent companies could be formed using fake names, stolen identities, false addresses, or fabricated director details with relatively little scrutiny.

The government’s position is clear: stronger identity checks are intended to improve transparency, strengthen trust in the UK corporate register, and make economic crime harder to hide behind corporate structures.

Companies House itself has stated that identity verification will play a “key role” in improving the reliability and accuracy of register data while tackling misuse of the register.

From a practical perspective, the government wants to:

• reduce fraudulent incorporations
• prevent directors using false identities
• stop shell companies being created anonymously
• improve confidence in UK businesses
• make enforcement against financial crime easier
• strengthen cross-checking between Companies House and other public bodies

The UK has historically been one of the quickest and easiest places in the world to set up a company. And while that flexibility has certainly benefited entrepreneurs in a legitimate fashion, it has also created opportunities for abuse.

The ECCTA reforms are essentially an attempt to rebalance that system — keeping incorporation accessible while introducing significantly more accountability.

 

Who Will Be Impacted?

These changes are not limited to newly formed companies or large corporations. The scope is extremely broad.

Companies House estimates that between 6 and 7 million individuals will ultimately need to verify their identity.

The rules will affect:

 

Company Directors

Both existing and newly appointed directors will need to verify their identity.

That includes directors of:

• limited companies
• LLPs
• corporate groups
• dormant companies
• small owner-managed businesses

If you’re listed as a director on Companies House, these rules almost certainly apply to you.

 

People with Significant Control (PSCs)

Individuals classified as PSCs must also verify their identity.

Typically, a PSC is someone who:

• owns more than 25% of shares
• controls more than 25% of voting rights
• has the right to appoint or remove directors
• otherwise exercises significant influence or control

Many business owners will therefore be impacted twice — once as a director and again as a PSC.

 

New Company Incorporations

From November 2025, new directors will need to complete identity verification before incorporating a company or being appointed to an existing one.

That means company formation processes have to change to incorporate this step.

Historically, incorporations could happen quickly with relatively little validation. Going forward, incorporation workflows will require verified identities before filings are accepted.

 

Individuals Filing at Companies House

The reforms will eventually extend beyond directors and PSCs.

Companies House plans to make identity verification compulsory for individuals presenting filings to the registrar.

In practice, that means people submitting documents on behalf of companies may also need verified status.

This is particularly relevant for:

• accountants
• company secretaries
• formation agents
• legal advisers
• payroll bureaux
• outsourced finance teams

Third-party firms filing on behalf of clients will effectively need to register as Authorised Corporate Service Providers (ACSPs).

For businesses, this means working with advisers who understand the evolving rules will become increasingly important.

 

What Changes Are Being Implemented?

The identity verification reforms involve more than just uploading a passport.

Several major procedural changes are being introduced simultaneously.

 

1. Mandatory Identity Verification

The headline reform is compulsory identity verification.

Individuals will need to prove they are who they claim to be before they can:

• incorporate companies
• become directors
• act as PSCs
• eventually submit filings

Accepted forms of ID may include:

• passports
• UK driving licences
• biometric residence permits
• other approved identity documents

In some cases, individuals without standard ID may need alternative verification routes.

 

2. Personal Verification Codes

Once verified, individuals receive a Companies House personal code.

This acts as a persistent identifier linked to the individual across their Companies House roles.

Think of it as a unique compliance ID that follows you across directorships and PSC appointments.

Businesses will need processes in place to:

• collect these codes
• maintain records
• ensure filings include accurate verification information

 

3. New Incorporation Rules

From 18 November 2025, identity verification becomes mandatory for new directors and PSCs during incorporation and appointment processes.

This means the traditional “same-day company formation” model may become more complicated where identities have not already been verified.

For startups and growing businesses, advance planning will become essential.

 

4. Transition Requirements for Existing Companies

Existing companies are not exempt.

Current directors and PSCs will need to complete verification during the transition period.

For directors, verification will typically align with the filing of the company’s next confirmation statement.

For PSCs, Companies House will assign specific compliance windows.

This means businesses should not wait until the last minute.

 

5. Stronger Companies House Powers

The reforms also dramatically increase the powers available to Companies House itself.

Historically, Companies House functioned more as a filing repository than a regulator, and by virtue of these change this is no longer the case.

The registrar now has enhanced powers to:

• challenge suspicious filings
• reject inaccurate information
• remove false data
• query inconsistencies
• share intelligence with enforcement agencies

Businesses can therefore expect more scrutiny over company records and greater expectations around accuracy and compliance.

 

6. Filing Restrictions

Over time, only verified individuals and authorised filing agents will be able to submit documents to Companies House.

This is particularly important for businesses that manage filings internally without external advisers.

Without proper verification, filings could potentially be rejected or delayed.

 

When Are the Changes Being Implemented?

The implementation is phased rather than immediate.

 

April 2025 – Voluntary Verification Began

From April 2025, individuals were able to voluntarily verify their identity with Companies House.

This early phase was designed to:

• test systems
• encourage adoption
• reduce bottlenecks ahead of mandatory implementation

And for these reasons many directors have already completed verification voluntarily.

 

18 November 2025 – Mandatory Verification Started

From 18 November 2025:

• new directors must verify before appointment
• new PSCs must verify
• identity verification becomes a legal requirement
• the 12-month transition period begins for existing directors and PSCs

 

Throughout 2026 – Transition Period Continues

Existing directors will generally verify when filing their next confirmation statement.

PSCs will receive an individual compliance windows linked to their circumstances.

Meanwhile, Companies House will continue expanding the system and enforcement framework.

 

No Earlier Than November 2026 – Filing Presenter Rules

Companies House has confirmed delays to some filing-related measures.  Therefore, by no earlier than November 2026:

• filing presenters may need mandatory verification
• third-party filing agents must register as ACSPs
• filing restrictions will tighten further

 

End of 2026 – Enforcement Activity Begins

Once the transition period ends, Companies House is expected to begin formal compliance enforcement against individuals who fail to verify.

Potential consequences may include:

• criminal offences
• fines
• inability to act as a director
• rejected filings
• possible company compliance issues

The government has also indicated that acting as an unverified director could become an offence.

 

Working with Accountants Early

The businesses that navigate these reforms smoothly will usually be the ones with proactive advisers.

At QAccounting, we’re already helping clients:

• assess who needs verification
• prepare for confirmation statement deadlines
• review Companies House records
• understand ACSP implications
• streamline compliance processes before enforcement begins

Because the reality is simple: once the transition period ends, fixing problems becomes significantly harder.

 

Can QAccounting Help Me?

Yes, we aim to be the UK’s Premier Online Accountancy and Tax Accountant, and we are here to help you every step of the way, whether you need to understand the rules in greater detail or need advice about next best steps.

Please give us a call (0116 243 7868), email us, or contact us ONLINE to speak to a member of our Accounting team without delay!

 

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