Companies House Begins Identity Verification Rollout

Companies House has launched its long-awaited identity verification service, marking a significant milestone in the UK’s effort to enhance corporate transparency and reduce financial crime. As of 8 April 2025, individuals can now verify their identity directly through the GOV.UK One Login system or via an Authorised Corporate Service Provider (ACSP).

This voluntary period of identity verification precedes the full legal enforcement expected in autumn 2025. When the mandate takes effect, over six million individuals—including company directors, people with significant control (PSCs), and those filing information—will be required to verify their identities. The staggered implementation is designed to ease the compliance burden on businesses.

A Key Reform Under the Economic Crime and Corporate Transparency Act 2023

The new identity verification requirement is part of a broader set of reforms introduced under the Economic Crime and Corporate Transparency Act 2023. The legislation grants Companies House enhanced authority to ensure the integrity of the UK’s corporate register and to prevent misuse of legal entities for illicit purposes.

Identity verification will improve confidence in the business environment by providing greater assurance about who is establishing, owning, and managing companies. Whether completed directly through Companies House or via an ACSP, the verification process is designed to deliver the same level of security and reliability.

A Strong Message on Transparency and Trust

Louise Smyth CBE, Chief Executive of Companies House, emphasized the importance of identity verification in protecting the credibility of the business register:

“Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.”

Smyth encouraged company directors, PSCs, and other stakeholders to verify their identities during the voluntary phase to save time and ensure compliance before the mandatory deadline later this year.

To further streamline the process, identity verification for existing directors will be incorporated into the annual confirmation statement—reducing redundancy and administrative effort for businesses.

Government Backing and Industry Confidence

The launch has drawn praise from across government and the business community. Leaders have hailed it as a decisive step toward deterring fraud, bolstering investor confidence, and making the UK an even more attractive place to do business.

Justin Madders MP, Minister for Employment Rights, Competition and Markets, described the rollout as timely and impactful:

“In a time where economic crime has become too common, it is imperative that we bring in measures to prevent identities being stolen online. Today marks a significant milestone in our plans to require identity verification for those setting up and running companies.”

Feryal Clark MP, AI and Digital Government Minister, underscored the dual benefit of digital security and streamlined business operations:

“Ensuring trust and transparency in the digital age is vital. Identity verification at Companies House through GOV.UK One Login will make it easier to do business with confidence – protecting entrepreneurs, consumers, and the UK economy from fraud and financial crime.”

Support From the Business and Legal Communities

Many within the corporate and legal sectors have welcomed the new identity checks as a much-needed safeguard against business impersonation and financial misconduct.

Shevaun Haviland, Director General of the British Chambers of Commerce, voiced her support:

“These new security measures will be welcomed by the thousands of genuine businesses who want to know that fraudsters and criminals cannot masquerade as legitimate concerns.”

Thom Townsend, Executive Director of Open Ownership, emphasized the global importance of identity checks:

“This will make the information on Companies House more accurate, reliable, and ultimately more useful, and ensures the UK meets international standards.”

Ben Cowdock, Senior Investigations Lead at Transparency International UK, agreed:

“We welcome the introduction of ID checks, which should make it harder for criminals to hide behind false identities. Having greater assurance over who owns and controls companies is a vital step toward defending the UK against money laundering.”

Professional Bodies Ready to Support Transition

While the identity verification requirement represents a shift in practice, professional associations have expressed readiness to assist businesses in navigating the change.

Glenn Collins, Head of Technical and Strategic Engagement at the Association of Chartered Certified Accountants (ACCA), highlighted the value of improved register integrity:

“We welcome the moves to improve and strengthen the integrity of the register. We expect our members to be busy advising and helping companies of all sizes adapt to these new regulations.”

The Law Society of England and Wales also acknowledged the importance of a staggered approach:

“We are pleased that Companies House is introducing the procedures on a phased basis, giving companies and LLPs the option to ensure their directors and PSCs complete the necessary checks ahead of time.”

Reinforcing the UK’s Global Reputation

The identity verification initiative is widely seen as a vital measure to improve transparency and rebuild trust in UK company data. It is designed not only to address vulnerabilities in the system but also to elevate the UK’s position as a safe and dependable jurisdiction for international commerce.

Patrick Walsh, Chair of the Business Information Providers Association (BIPA), called the initiative a “crucial step” in implementing the goals of the Economic Crime and Corporate Transparency Act:

“The implementation of these robust checks will deter fraud and bolster confidence in Companies House as the custodian of reliable business data. These measures will strengthen the UK’s economy by fostering transparency and accountability.”

BIPA also confirmed its ongoing collaboration with Companies House to support smooth adoption and implementation.

What Happens Next?

The identity verification requirement will become mandatory in autumn 2025. Until then, the current voluntary period allows individuals to verify their identity early and avoid delays once compliance becomes compulsory.

To ease the transition, Companies House is:

• Providing access to identity verification via GOV.UK One Login or through an ACSP
   
• Integrating identity verification into the annual confirmation statement for existing directors
   
• Offering guidance and support to businesses, agents, and professional bodies
   

Once fully implemented, identity verification will apply to:

• Company directors
   
• People with significant control (PSCs)
   
• Anyone filing documents on behalf of a company
   

The goal is to improve the quality and trustworthiness of data on the register, making it easier for businesses, consumers, and law enforcement to rely on accurate information when making decisions.

Why It Matters

Identity verification at Companies House is not just a regulatory formality—it is a major advance in the UK’s fight against economic crime. By ensuring that all individuals involved in corporate structures are known and verifiable, the UK sends a clear message that transparency and accountability are non-negotiable in its business environment.

The initiative protects legitimate businesses, strengthens public trust, and brings the UK in line with international standards for corporate governance. It also reflects the government's ongoing commitment to digital transformation that reduces red tape while reinforcing security.

Final Thoughts

The launch of identity verification is a defining moment for corporate transparency in the UK. As the rollout progresses, businesses are encouraged to act early, seek professional guidance, and use the voluntary window to complete identity checks.

Whether you are a director, shareholder, agent, or adviser, understanding and engaging with these changes now will ensure a smoother transition when the rules become mandatory later in 2025.

For more information, visit Companies House or consult your legal or corporate services adviser.

Important Notice

This guide is provided for general information purposes only and is not intended to be relied upon as legal advice. While we’ve taken care to ensure the information is accurate and up to date as of the time of writing, it does not take into account your personal circumstances and should not be used as a substitute for tailored legal advice. Reading this guide does not create a solicitor-client relationship between you and Parachute Law. We accept no liability for any loss or damage arising from reliance on this guide. If you need legal advice about your specific situation, we encourage you to get in touch with us for a confidential consultation. We're here to help you understand your options and take the next step with confidence. Contact us at: thelegalteam@parachutelaw.co.uk