Thursday, 11 December 2025
Identity verification has officially become mandatory for company directors and people with significant control (PSCs) in the UK following the latest implementation phase of the Economic Crime and Corporate Transparency Act 2023. Companies House confirmed that the new requirements came into effect on 18 November 2025, marking one of the biggest compliance changes for UK companies in decades.
The rules apply immediately to all new directors and newly registered PSCs, whether on the incorporation of a new company or through changes to an existing one. For individuals already serving as directors or already registered as PSCs on 18 November, the regime will be phased in over the next 12 months and tied to existing Companies House filing timelines. A PSC is generally defined as an individual owning or controlling more than 25% of company shares or voting rights.
Identity verification is designed as a one-time process. Individuals must prove their identity using approved documents—such as a passport—through a free government service or an authorised third-party provider. Once verified, the individual receives a unique identity number that must be used for all future interactions with Companies House. Individuals holding multiple directorships or PSC roles will only need to verify once, but will face several compliance deadlines across different companies.
Under the new rules, anyone appointed as a director after 18 November 2025 must provide their verified ID number as part of the appointment process. Existing directors must complete verification before filing their next annual confirmation statement (CS01), and Companies House is urging early completion to avoid complications such as mismatched records, expired identification documents, or delays affecting foreign nationals or individuals living overseas.
Individuals becoming PSCs after 18 November must supply their ID number when added to the Companies House register, or within 14 days of the change. Those already registered as PSCs face different obligations depending on whether they also serve as directors of the same company. PSCs who are also directors must submit their ID number twice—once as a director and separately as a PSC—while PSCs who are not directors must submit their ID number within the first 14 days of their birth month.
Failure to comply carries significant legal consequences. The Act introduces new criminal offences for both individuals and companies, including cases where a person continues acting as a director without being verified by the required date. In such instances, not only the individual but the company and its other officers may be held liable. Companies House has published guidance outlining its enforcement approach, signalling that non-compliance will be taken seriously.
Law firms and corporate advisers are now helping clients prepare for the transition, ensuring verification is completed early and assisting with complex cases involving multiple roles or overseas individuals. The shift marks a major step in the UK’s efforts to increase corporate transparency and combat economic crime through tighter scrutiny of those who control and manage companies.
Source: CMS
