Companies House is encouraging company directors and individuals with significant control to confirm their identity through its platform. Although currently optional, the UK government intends to make this process compulsory by autumn 2025.
The upcoming requirement is expected to impact over six million individuals, including those involved with limited companies. Once the rule is in force, affected individuals will have 12 months to complete the identity verification process. Companies House hopes that introducing the changes gradually will ease pressure on businesses by avoiding a last-minute rush to comply.
This move forms part of the implementation of the Economic Crime and Corporate Transparency Act 2023, designed to improve corporate accountability and strengthen the UK’s defences against financial crime. Verifying the identities of those listed on the Companies House register will enhance transparency around who is forming and running companies across the UK.
Louise Smyth CBE, Chief Executive of Companies House, commented: “Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register. To reduce the burden on business, the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process.”
Feryal Clark MP, Minister for AI and Digital, welcomed the change: “Ensuring trust and transparency in the digital age is vital and today marks an important step forward. Identity verification at Companies House through our GOV.UK One Login service will make it easier to do business with confidence – protecting entrepreneurs, consumers, and the UK economy from fraud and financial crime. By embracing digital identity checks, we’re reducing red tape while strengthening our defences against abuse of the system. This is a win for businesses, a win for transparency, and a win for economic growth – a key driver for our Plan for Change.”
What steps should small business owners take?
Those wishing to complete the identity check ahead of the formal requirement can already do so, provided they are either a company director or someone with significant control. Identity verification can be carried out:
- Directly with Companies House using the government’s One Login service, or
- Through an Authorised Corporate Service Provider (ACSP), such as an accountant or company formation agent.
If you need help completing the new identity verification process, contact one of our accountants today.
