ID Verification changes and how they impact you

Companies House has launched its new process for ID verification (IDV), with all directors and Persons with Significant Control (PSCs) needing to have their identity verified to own or run a limited company.

This legislation will also apply to those who file on behalf of clients, such as Accountants.

What are the changes?

These changes are part of the updates to the Economic Crime and Corporate Transparency Act (ECCTA 2023) and are coming into force with the aim of cracking down on fraudulent activities, and providing a better response to economic crime through improved transparency of company ownership and verification of Companies House records.

For those wanting to incorporate a new company, after Autumn 2025 this will become part of the incorporation process. Until then, it is something you will have to do in the near future.

For those with an existing company, or those that incorporate before Autumn 2025, there will be a 12-month transition period to allow all directors and PSCs to verify their identity using one of their two methods.

What are the two methods for IDV?

There are two ways a director or PSC can verify their identity with Companies House.

1. You can do this directly using the GOV.UK One Login app or web service, or face-to-face at the Post Office

2. Through an Authorised Corporate Service Provider (ACSP)

What do I need in order to verify my identity?

To verify yourself:

• Access to the internet

• A valid email address

• Registered user of Companies House Service (CHS)

• Have evidence to support the application (the website or app will specify what is required). If going to do it face to face, it is expected you will need a passport or driving licence, and possibly your National Insurance number and evidence of a UK bank account.

To be verified by an ACSP:

• Your name, and former names (where applicable)

• Date of birth

• Address, and former address (where applicable) if you've lived there for less than 12 months

• A valid email address

• Evidence, but your provider will explain what is needed from you at the time

Timelines

As noted, this is expected become mandatory from Autumn 2025 (official date to be announced), with a 12-month transition period for those with an existing company.

Voluntary IDV is available now.

What will happen if I don't do it in time?

Failure to verify your identity with Companies House will result in the individual(s) being prohibited from acting as a director or PSC, a penalty of up to £10,000 and also a risk of a prison sentence of up to 2 years.