In a major step towards tackling economic crime and boosting transparency, Companies House has launched a new identity verification service aimed at those setting up, managing, or controlling businesses in the UK. The new identity verification rules for UK Business Owners process will soon become a legal requirement, is set to impact more than six million individuals over the next year.
A Voluntary Start Before the Mandatory Roll-Out
From April 2025, the identity verification system opens voluntarily, giving directors, people with significant control (PSCs), and others who file with Companies House the opportunity to complete their verification before the mandatory deadline.
The move comes as part of a broader reform package under the Economic Crime and Corporate Transparency Act 2023, which granted Companies House new powers to improve the integrity of the business register and help curb fraudulent activity.
Louise Smyth CBE, Chief Executive of Companies House, expressed the significance of this development, stating:
“Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.
“To save time later, 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.”
She added that mandatory checks are expected to come into effect from autumn 2025, giving businesses ample time to adjust and comply.
How the Identity Verification Rules for UK Business Owners Work
Those required to verify their identity can do so directly through Companies House or via an Authorised Corporate Service Provider (ACSP), such as a company formation agent or legal professional. The choice allows for flexibility and convenience, especially for those already working with professional advisers.
Importantly, Companies House has confirmed that the new identity verification requirements for existing directors will be seamlessly integrated into the annual confirmation statement process. This should help ease the administrative burden and allow businesses to align the new checks with their usual filing routines.
The new identity checks are designed to increase trust and transparency in the UK business environment, something that’s become increasingly critical amid rising concerns over economic crime and fraud.
Minister for Employment Rights, Competition and Markets, Justin Madders MP, emphasised the importance of the new measures, noting:
“In a time where economic crime has become too common, it is imperative that we bring in measures to prevent identities being stolen online, and today marks a significant milestone in our plans to require identity verification for those setting up and running companies on the Companies House register later this year.
“This is good for business, lenders and transparency and will give companies, consumers and lenders more certainty about who they are doing business with.”
Why It Matters
Identity verification is a vital defence against fraudsters misusing the register for illicit activity. It means that stakeholders can be more confident in the authenticity of the individuals behind a company, whether they’re investors, suppliers, lenders, or customers.
For many businesses, particularly SMEs, these changes might seem daunting at first. However, the long-term benefits of a cleaner, more trustworthy register are significant. Not only does it safeguard legitimate businesses, but it also enhances the UK’s reputation as a secure and reliable place to do business.
What You Should Do Now
If you’re a company director, someone with significant control, or someone who regularly files information with Companies House, it’s worth completing your identity verification early. Doing so during the voluntary window will not only save time but also ensure you’re ahead of the curve before the process becomes mandatory.
Keep in mind:
– You can verify your identity online via Companies House.
– Alternatively, use an Authorised Corporate Service Provider (ACSP) if that suits your setup better.
– From autumn 2025, verification will be a legal requirement.
This is a big moment for UK businesses – a proactive move towards protecting the system from abuse and ultimately making it easier for everyone to trust who they’re doing business with.
The new identity verification rules for UK business owners are more than just red tape – they’re a necessary safeguard in an increasingly digital and complex world.
So, whether you’re launching a new venture or running a long-established company, now is the time to prepare. Transparency is no longer a choice – it’s becoming a core part of how UK businesses will operate.
