On 30 April 2025, the UK’s corporate landscape took another step forward in its transparency drive with the introduction of mandatory identity verification for directors, People with Significant Control (PSCs), and those filing information on behalf of companies.
This latest change, brought in under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), marks a significant development in the ongoing effort to combat economic crime and strengthen trust in the UK’s corporate system.
This note outlines what has changed, who is affected, and what companies should be doing to ensure compliance.
Why These Changes Matter
In one of my previous articles, I discussed key issues for directors of UK companies, the broader scope and ambition of ECCTA —piece of legislation designed to improve corporate transparency, tackle fraud, and enhance the reliability of information held at Companies House.
The identity verification requirements now in force are central to these goals. By ensuring that individuals behind corporate entities are who they claim to be, the legislation aims to make it harder for bad actors to hide behind anonymous structures.
Who Must Verify Their Identity?
The identity verification requirements will be phased in over time. The current and upcoming key dates are:
- 8 April 2025: Voluntary identity verification opened.
- Autumn 2025: Mandatory verification for all new company incorporations and appointments of directors/PSCs.
- Spring 2026: Mandatory verification for existing directors and PSCs as part of the confirmation statement process.
Under the new regime, the following individuals must complete identity verification:
- All new and existing company directors (and equivalents in LLPs and other entities)
- People with Significant Control (PSCs) over UK-registered entities
- Anyone filing information at Companies House on behalf of a company (e.g. agents or intermediarie
Expanded Verification Methods
There are several ways for individuals to complete the identity verification process:
- Through the Companies House online service, for those with UK digital identification
- Using an Authorised Corporate Service Provider (ACSP), such as Branch Austin McCormick
- At designated Post Office branches in the UK, for in-person verification (where available)
The appropriate method will depend on individual circumstances, including nationality, residency, and available documentation.
Implications for Overseas Directors and PSCs
For directors and PSCs who reside outside the UK, identity verification may pose additional challenges. Such individuals may not possess UK-issued identification documents or access to the Companies House online verification service.
In these cases, and subject to meeting our firm’s own compliance requirements, using an ACSP such as Branch Austin McCormick is often the most effective route. ACSPs can verify overseas individuals through regulated procedures, ensuring compliance without requiring physical presence in the UK.
What Happens If You Don’t Comply?
Companies House will begin rejecting filings made by individuals who have not verified their identity.
In due course, it will be an offence to act as a director without having completed this process. Civil and criminal penalties may apply to non-compliant individuals and companies, including an unlimited fine and/ or imprisonment for providing misleading, false or deceptive information to Companies House, either knowingly or “without reasonable excuse.”
Practical Compliance Checklist
To support timely compliance, companies should consider the following steps:
- Identify all directors, PSCs, and filing individuals within your corporate structure
- Determine the most suitable identity verification method for each person – if any ID documents are due for renewal, individuals may wish to delay their application for a new passport/ driving licence, etc until the verification process has been completed.
- Engage a CSP where online verification is not practical or possible – we would be happy to consider if you are a suitable candidate to engage Branch Austin McCormick’s services as an ASCP in this regard.
- If your UK company is due to file a confirmation statement at Companies House in autumn 2025, we recommend your directors verify their ID as soon as possible over the next few months to avoid delays and penalties.
- Similarly, if you are planning an acquisition or restructure and know the board of directors will change, it would be advisable for new directors to take advantage of the voluntary identification window and have their ID verified before the new changes take effect
- Set internal compliance deadlines in advance of Companies House’s mandatory enforcement dates
- Monitor developments from Companies House for any updates to the verification process or timelines
A Turning Point in Corporate Governance
This change, while administrative in nature, signals a wider shift in how the UK views corporate accountability. It reinforces the importance of transparency and the responsibilities of those in control of UK entities.
At Branch Austin McCormick, we are assisting clients, who are based both in the UK and overseas, across sectors in navigating these reforms.
If you have questions about how to comply with the new identity requirements (including assistance from us as an ACSP with registering ID details for directors), or if you need support in complying with the ECCTA more broadly, please do not hesitate to get in touch with Harender Branch, the head of our corporate team, at hkb@branchaustinmccormick.com or by telephone at +44 207 851 0100.
