Big Changes at Companies House: ID Verification Explained

Starting this year, company directors and key individuals in the UK will be required to verify their identity under sweeping reforms to Companies House. Introduced through the Economic Crime and Corporate Transparency Act 2023, the changes seek to curb fraud, boost transparency and make sure the details held by Companies House are accurate and reliable.

But what does this mean for the millions of people who will be hit? We have prepared this article to answer this precise question and clarify this new provision for you.

The Big Picture

By 2026 every company director and Person with Significant Control (PSC) in the UK will need to verify their identity with Companies House. The goal is to make it harder for criminals to hide behind fake companies and to verify that the people running businesses are who they say they are.

The changes will roll out in stages, starting with voluntary ID verification in April 2025 and becoming mandatory for new appointments and incorporations by autumn 2025. Existing directors and PSCs will have a 12-month transition period to get their IDs verified, meaning everyone must be compliant by autumn 2026.

Why the Changes?

The current system has its flaws. Companies House has long been a treasure trove of information but it has also been a playground for fraudsters. The new rules will give Companies House more power to verify identities so the information on its register is accurate and trustworthy.

Under the reforms, third-party agents like accountants and company formation agents will also need to register as Authorised Corporate Service Providers (ACSPs). This means they will have to prove their own identities and meet strict anti-money laundering (AML) requirements before they can file information on behalf of their clients.

The Timeline: What Happens When?

Here is a rundown of the important dates:

Originally, the process was supposed to start earlier but delays extended the timeline. Even so, businesses and agents moan they have less time to get everything in order before the mandatory phase begins.

What is an ACSP & Why Does It Matter?

If you are a third-party agent like an accountant, solicitor or company formation agent you will need to register as an ACSP to continue filing information for your clients. That will help Companies House to confirm that only legitimate, verified agents are handling sensitive information.

• To become an ACSP, you will need to meet certain criteria
• Your business must be registered with a UK AML supervisory body
• Senior staff members (like directors) will need to verify their identities
• You will need to keep your business details up to date and notify Companies House of any changes

Once registered, you will get a digital account and a unique identity number, which will allow you to file information and verify your clients’ identities. You will also be able to add other team members to your account, though they won’t need to go through the same identity checks.

How Will Identity Verification Work?

For directors and PSCs, the process will require you to provide your full name, date of birth, and address, along with documents that prove your identity. Those documents will be checked using Identification Document Validation Technology (IDVT) or manually by trained professionals.

The process is similar for ACSPs but with extra responsibility. You will need to verify your clients’ identities, cross-referencing their documents and biometric data to check everything matches up.

What Happens If You Don’t Comply?

If you are a director or PSC and you don’t verify your identity by the deadline, you could be slapped with serious consequences. Companies House will have the power to reject filings, and you could even be removed from the register. For ACSPs, failing to meet the requirements could mean losing your authorisation to file information on behalf of clients.

Conclusion

The changes introduced could affect millions. But they are also welcome as Companies House tries to make it harder for fraudsters to operate by tightening up the rules around identity verification,

If you are a director, PSC or third-party agent, now’s the time to start preparing. Get familiar with the new requirements and mark the key dates in your calendar.