From April 2025, significant new legal obligations have come into force that will affect almost all UK companies and LLPs. Under the Economic Crime and Corporate Transparency Act 2023, Companies House has started to roll out mandatory identity verification for individuals involved in the formation, ownership, and control of UK-registered entities.
This is part of a wider drive to increase transparency, clamp down on fraudulent company activity, and prevent the misuse of UK corporate structures.
If you are a company director, a person with significant control (PSC), an LLP member, or someone involved in forming a company, these new rules are directly relevant to you.
Who must be verified?
The identity verification requirement applies to a broad range of individuals connected with UK corporate entities, including:
- Company directors (for companies registered in the UK)
- Persons with Significant Control (PSCs)
- LLP members
- Individuals forming new companies or LLPs
- Authorised agents (known as Authorised Corporate Service Providers or ACSPs)
Over time, the requirement will extend to all existing individuals in these roles. For now, it applies to any new appointment or registration made from 8 April 2025.
What is identity verification?
Verification involves confirming that a person is who they claim to be. This process must be completed through one of two routes:
- Directly through Companies House, using a secure digital system that checks photographic ID and confirms key personal information.
- Via an Authorised Corporate Service Provider (ACSP) – such as your accountant or solicitor – who is registered with Companies House to conduct identity checks on behalf of clients.
Only once an individual has been verified will Companies House allow them to act in their appointed role or be added to a company’s public register.
Why has this change been introduced?
The government is strengthening the role of Companies House to prevent the use of fake identities and nominee directors. Historically, it has been possible to incorporate companies with limited scrutiny of those involved. This reform aims to create a more trustworthy business environment and help law enforcement tackle fraud and economic crime.
What should companies do now?
If you are responsible for a company or LLP, it is important to act early:
- Review your existing PSCs and directors to confirm who will need to be verified
- Ensure any new appointments from April 2025 onwards complete identity verification promptly
- Discuss with your accountant or legal adviser how to manage verification – either directly or via an ACSP
Failing to comply with the rules could result in the rejection of company filings or even criminal penalties. Only verified individuals will be able to act in their roles, and unverified appointments may be invalid.
How we can help
As an authorised agent, we can conduct identity verification checks for your company or LLP. This service ensures compliance with the new rules and avoids the administrative burden of managing the process internally.
If you have any questions about how these changes affect your business or would like to arrange for us to complete identity checks on your behalf, please get in touch. We are here to help you stay compliant and informed.