July 9, 2025 Why You Should Act Now to Verify Your Identity for Companies House
Identity verification is a central part of the UK’s corporate transparency reforms under the Economic Crime and Corporate Transparency Act 2023.
Over seven million individuals, including directors, PSCs, and filing agents, will need to complete the process. While the requirement will not be enforced until later in 2025, the system is already live, and early action is strongly recommended by Companies House. In this article, we take a look at the reasons why individuals shouldn’t delay.
Background
One of the key changes introduced by the Economic Crime and Corporate Transparency Act 2023 (ECCTA) is the requirement for directors and others to verify their identity with Companies House.
Although identity verification won’t be mandatory until Autumn 2025 (exact date TBC), the system is already live. Companies House CEO Louise Smyth CBE has encouraged early action, saying:
“We encourage directors, people with significant control of companies (PSCs), and those filing information with Companies House to verify their identity during the voluntary window.”
Starting now avoids last-minute pressure, reduces compliance risk, and gives you time to identify and support individuals who may face delays.
Over Seven Million People Will Need to Verify
The rules apply to a wide range of individuals:
- Company directors
- Equivalent roles such as LLP members, general partners and managing officers
- Directors of overseas companies with UK establishments and unregistered companies. Find out more here.
- People with significant control (PSCs), or relevant officers of corporate PSCs
- Individuals who file for companies (e.g. company secretaries, by Spring 2026)
Companies House estimates over seven million people will need to be verified, its largest compliance exercise to date. Even with the Companies House system investment, delays are possible as demand builds.
Verifications Will Be Front-Loaded
The compulsory verification date for each individual is generally the first Confirmation Statement date of a company that the individual is a director of (though there can be other trigger dates).
If you’re a director of several companies, the obligation starts with the first confirmation statement due. For that reason, verifications will be front loaded, adding to potential bottlenecks, especially early on. It is not unreasonable to expect nearly 1 million people a month to need to register in the first few months.
Choosing the Right Verification Route
There are three ways to verify:
- Online via GOV.UK
- In person at a designated Post Office
- Through an Authorised Corporate Service Provider (ACSP)
Not every option suits every person. Some won’t have the right documents for the government route. Others may want extra support, especially if they’re overseas or unfamiliar with the UK system. ACSPs can provide a more tailored, managed experience and take on the administrative burden. Enterprises wishing to consider ACSPs will want to factor in any internal supplier selection and onboarding processes.
This Is Not the Same as AML Checks
Although many firms already conduct Anti-Money Laundering (AML) checks, the Companies House identity verification regime is different. AML is risk-based and allows discretion; identity verification under ECCTA is rule-based and prescriptive, both in terms of who must be verified and what documentation is acceptable. Not all professional advisors are supporting their clients with identity verification. Elemental is supporting both new and existing clients with its Elemental Verify platform.
There Are Offences for Non-Compliance
Once the regime goes live, any unverified director or equivalent will be committing a criminal offence if they continue acting. Any company that permits this will also be in breach. On top of that, Companies House won’t accept the confirmation statement, meaning late filings, possible penalties, and reputational damage.
Identifying Who Needs to Be Verified May Take Time
In straightforward cases, this will be easy. For example, all listed directors. But things get more complex with PSCs, corporate structures, and overseas ownership. Even knowing where to look can be a challenge.
Start with your company’s PSC register, recent confirmation statements, or incorporation documents. In more complex structures, legal or governance teams may need to map out ultimate control or beneficial ownership to confirm who qualifies.
The Right Documents May Not Be to Hand
Regardless of the verification route, individuals must provide documents themselves. For some, this is as simple as uploading a passport. But others will need additional items, such as proof of address (e.g. utility bill) or proof of name change (e.g. marriage certificate).
Tracking down these documents can take longer than expected, particularly if translations or certified copies are needed.
There is also a real risk for some individuals that they don’t have the right document. For example, we know that for a material minority of biometric (or chipped) passports, the chip does not work. This could be because of water damage, overuse or just error. The passport will normally still work fine as a passport, but it will not be sufficient for this identity verification as the chip cannot be checked.
By starting early, you have time to gather what’s needed and resolve any issues before they cause delay. There can also be other unexpected issues, for example, where an individual’s name at Companies House does not match their ID.
Overseas Individuals Often Face the Greatest Hurdles
Verifying non-UK individuals frequently introduces extra complexity. They may be less engaged with UK compliance, unfamiliar with the process, or hold documents not recognised under UK rules. Language barriers, time zone differences, and unfamiliar formats can all slow things down.
If your directors, PSCs or filing agents include overseas individuals, now is the time to alert them. Early engagement allows time to explain what’s required and avoid them becoming a bottleneck.
Verification Will Become a Barrier to Incorporation
From Autumn 2025, no one will be able to act as a director or equivalent unless they have already been verified. In practice, this means you won’t be able to incorporate a company unless all key individuals have completed the identity process.
This marks a shift in how company formation works; verification will become a prerequisite. If you’re forming companies on behalf of clients or managing incorporations internally, this is something to plan for now.
As an Authorised Corporate Service Provider (ACSP), Elemental can support incorporations and identity verification in tandem, streamlining the process for clients and internal teams alike.
In Summary
While identity verification is not yet mandatory, delaying action creates risk. By acting now, companies can identify who needs to be verified, ensure the right documents are in place, and choose the most appropriate verification route.
Elemental can help at every stage. As an Authorised Corporate Service Provider, we offer secure remote verification technology available 24/7, anywhere in the world. We support complex and overseas cases, provide a fully managed service for senior stakeholders, and can provide technical support. For existing clients, we can review your records to identify who needs to be verified.
To find out more about our verification service, visit our identity verification services page.
