As part of the UK government’s wider crackdown on economic crime, Companies House has been granted new powers under the Economic Crime and Corporate Transparency Act 2023. The aim is to make it harder for criminals to misuse UK corporate structures for fraud or money laundering and to strengthen trust in UK-registered companies. Understanding what is changing and what action you may need to take is key to ensuring compliance and avoiding penalties.

From Spring 2025, Companies House has introduced a new process for verifying identification. Anyone creating, owning, running or controlling a company in the UK will need to verify their identity.

This new process will also apply to other company types, e.g., for members and persons with significant control (“PSCs”) of a limited liability partnership. This implementation timeline is expected to align with the dates for UK companies.

Who needs to verify their identity?

• Directors;
• PSCs;
• Relevant officers of relevant legal entities (RLEs) with significant control;
• The equivalent of a director – this includes members of LLPs, general partners and managing officers;
• Authorised Corporate Service Providers (“ACSPs”), who are individuals or organisations that undertake anti-money laundering supervised activity; and
• Anyone acting on behalf of a company / filing documents at Companies House.

Ways to verify

• Online: using GOV.UK One Login with photo ID such as a passport (from any country) or a UK driving licence.
• Through an intermediary ACSP: solicitors, accountants, company formation agents or other authorised agents can verify on your behalf. This may be a more convenient route for many businesses, particularly those managing multiple appointments.
• In person at a post office if you cannot verify online and you live in the UK.

The Chief Executive Officer of Companies House, Louise Smyth, stated that verification requirements for existing directors will be integrated into the annual confirmation statement update process to reduce administrative burdens, but we are not sure yet how this will look.

When to verify

From 8 April 2025, individuals can voluntarily verify their identity. You can verify directly with Companies House.

By Autumn 2025, all directors and PSCs for new incorporations will be required to verify their identity at the point of incorporation. There will be a transition period of 12 months for existing companies that will be required to provide identity verification credentials for their directors and PSCs when their confirmation statement is due to be filed.

What happens when you verify?

When you have successfully completed the identity verification process, you will receive a unique identifier called a Companies House Personal Code (“Personal Code”). This Personal Code will be personal to you (not the company or the company that you work for).

From Autumn 2025, you will need this Personal Code for a number of things, e.g., to file confirmation statements.

What happens if I do not verify my identity?

You will not be able to:

• make any filings;
• start a new company or entity; or
• register as an ACSP.

If you continue to act as a director or a PSC without verifying your identity after it becomes a legal requirement, you will be committing an offence and could be disqualified and may have to pay a penalty or fine. The company (or entity) and all directors may also be committing an offence.

Changes already in effect

While identity verification is still voluntary for now, several reforms have already been introduced since March 2024:

• Companies must now provide a registered email address, and this must be kept up to date.
• Restrictions on company names have been strengthened to prevent misleading or offensive terms.
• New rules mean that a registered office must now be a real, physical address — PO boxes are no longer acceptable.

What’s coming next?

Other significant changes are still to come and are likely to be phased in during 2025. These include:

• The removal of certain local registers (such as the register of directors) in favour of a single, centralised register held by Companies House
• More powers for Companies House to remove fraudulent or non-compliant entities from the register

What should you be doing now?

1. Audit your Companies House records – Make sure all officers, PSCs, and addresses are correct and up to date.
2. Check your registered office – Ensure it is compliant with the new rules and not just a forwarding address or PO box.
3. Get ready for verification – Directors and PSCs should be made aware of the changes and ensure their ID documents are valid and accessible. They can choose to voluntarily register their details now.
4. Consider working with an ACSP – Appointing a trusted intermediary, such as your legal or accounting advisor, may simplify the process.
5. Monitor updates – Companies House is developing the systems needed to implement identity checks, and further announcements are expected.

If you’re unsure how these changes affect your business or how best to prepare for identity verification, the corporate team at Geldards is here to help. We’re already working with clients across sectors to ensure they’re ahead of the curve and ready for the new Companies House regime.