Attention all Company Directors! New identity verification process introduced by Companies House
Valerie Dickson
Compliance Consultant
From 25 March 2025, Companies House is introducing a new identity verification (IDV) process with the aim of reducing the use of companies for illicit purposes.
This new process is being introduced by the Economic Crime and Corporate Transparency Act (which received Royal Assent on 26 October 2023). Anyone establishing, running, owning, or controlling a company will need to prove they are who they claim to be.
You can read the updated UK.Gov guidance here.
Why are Companies House introducing new identity verification processes?
This is one of several changes being introduced at Companies House. It will give Companies House greater power in tackling economic crime, increasing transparency and scrutinising data accuracy, thereby fostering UK economic growth. More details on the changes being brought in by Companies House are available via their YouTube channel.
Who is affected by the new identity verification process?
The IDV process will apply to every type of incorporated entity, including PLCs, LLPs, LPs, CICs, private companies and overseas companies, and it applies to all the UK registrars (England and Wales, Scotland & Northern Ireland).
The IDV process will be compulsory for all:
- New directors and persons with significant control (PSCs)
- Existing directors and PSC (it must be completed by Autumn 2026)
- Anyone acting on behalf of a company
When does the new process start?
The IDV process is being implemented in several stages, starting from 8 April 2025. It is important to note that individuals themselves must complete the process. You cannot get your company secretary or practice manager to do this for you on, say, a bulk basis for the entire board.
Timeline
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25 March 2025 |
Identification verification of new directors must take place before delivering an application for the formation of a company to the Registrar |
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Post-incorporation, directors must verify their identity as soon as possible and must do so before the company notifies their appointment to the Registrar. |
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8 April 2025 |
Existing directors will be able to voluntarily verify their identity directly with Companies House |
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By Autumn 2025 |
Existing directors have 12 months from this point to complete the new verification process |
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By Spring 2026 |
Identity verification will be required for presenters filing any document on behalf of a company and third-party agents filing on behalf of a company will be required to be registered as an ACSP |
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By end 2026 |
Additional filing requirements will be introduced for limited partnerships |
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By end 2026 |
The transition period for requiring identity verification will be complete and compliance actions will be commenced against those who have failed to complete identity verification where required to do so. |
How to complete Companies House new ID verification process
Directors can complete the verification process directly in one of two ways:
- Via the GOV.UK One Login portal using ID documents such as a passport
- Via an Authorised Corporate Service Provider (ACSP)
What is an Authorised Corporate Service Provider (ACSP)?
An ACSP is an individual or organisation that undertakes AML supervised activities such as company formation agents, solicitors, accountants and chartered secretaries and governance professionals. All ACSPs must register with Companies House and be supervised by one of 25 AML supervisory bodies such as HMRC, Financial Conduct Authority or the Insolvency Practitioners Association. You can find a full list of supervisory bodies on GOV.UK.
What are the penalties for non-compliance with IDV?
It is an offence to not comply with the IDV on time resulting in a range of consequences that include financial penalty and an inability to start a new company or to make filings for your company at Companies House. (Currently, there is no breach of the law if a company fails to notify Companies House of a director’s appointment.)
If you have questions regarding these changes or other changes being brought in by Companies House, please give us a call.