Director identity verification: UK company law update

Companies House is implementing a new identity verification process to make it harder for criminals to misuse UK companies. As part of the Economic Crime and Corporate Transparency Act 2023, all company directors, along with people with significant control (PSCs), must now complete identity verification.

This is no longer optional. Without verified ID, you will not be able to file key documents, including your Confirmation Statement, and your company may face compliance risks or even be struck off the register.

To help you stay ahead, we’ve broken down what the new identity verification requirements mean and how to complete the verification process.

Who needs to verify their identity?

Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to be. The requirement applies to:

• All company directors

Anyone currently listed as a director of a UK-registered company must verify their identity to remain on the Companies House register.

• All future directors before they can be appointed

Individuals must complete identity verification before their appointment as a company director can be officially registered.

• People with significant control (PSCs)

Anyone who owns or controls more than 25% of a company, or exercises significant influence over it, must also verify their identity.

• Directors of corporate entities (in certain cases)

Where a company acts as a corporate director, the individuals controlling that entity may need to complete identity verification depending on the structure and role.

This is a legal obligation and will apply to all UK-registered companies.

When does identity verification take effect?

The new rules will be introduced in stages, but Companies House has already begun notifying directors and company secretaries of the upcoming changes. We expect full implementation within the next few months, and the verification process will become a prerequisite for all Companies House filings.

Why this matters

The aim is to improve corporate transparency, prevent fraudulent registrations, and strengthen the reliability of the companies register. Once the system goes live:

• Filings will be blocked if directors or PSCs aren’t verified

You won’t be able to submit key documents to Companies House - including Confirmation Statements, director changes, or share updates - unless all relevant individuals have completed identity verification.

• New companies can’t be registered without verified directors

If you’re incorporating a new company, all proposed directors must be verified before the registration will be accepted.

• Unverified directors may face penalties

If a director fails to verify their identity within the required timeframe, they could be subject to financial penalties - and in more serious cases, the company may be struck off the register altogether.

How to complete identity verification

You can choose one of three routes to verify your identity:

1. Verify your ID through Companies House (GOV.UK One Login)

This is a secure digital process involving facial recognition software. You’ll need:

• A valid passport or photocard driving licence
• Access to a smartphone or device with a camera
• AGOV.UK One Login account

You’ll be asked to take a live photo or short video to confirm your identity. The system will compare this with your ID document to complete verification.

2. Verify through an Authorised Agent

Authorised agents, can complete identity verification on your behalf. As a Lawyerlink client, we are able to refer you to an authorised agent to do this on your behalf. They will:

• Carry out the required due diligence and ID checks
• Submit your verification to Companies House via our authorised agent channel
• Confirm once your status is updated on the register

3. In-person identity verification at a Post Office

Available only at select branches. You’ll need:

• Original identity documents
• Proof of address
• To visit in person and complete the check on-site

This route may be useful for those unable to complete online identity verification, but is more limited in terms of availability and convenience.

Supporting documents

To verify your identity, you’ll typically need one or more of the following:

• Valid UK passport
• Photocard UK driving licence
• Biometric Residence Permit (BRP)
• EEA national identity card (in limited cases)

Once your identity is verified, what next?

• Your verified status will be recorded with Companies House
• You won’t need to repeat the process unless your personal details change significantly
• All future filings will be checked to ensure that only verified individuals are involved
• New directors must be verified before their appointment can be registered

What happens if you don’t verify your identity?

Failure to verify your identity will prevent you from filing documents at Companies House. Your company may:

• Miss statutory filing deadlines
• Incur late filing penalties
• Face strike-off proceedings
• Become non-compliant under UK company law

It’s therefore essential that all directors and PSCs complete this step promptly.