Identity Verification At Companies House: What UK Small Business Owners Need To Know

Clarified Accounting Ltd

August 3, 2025 - Updated on August 12, 2025

General

Running a small business in the UK is becoming increasingly more rigorous and secure. Companies House rolled out new identity verification rules as part of the government’s wider effort to crack down on fraud and improve transparency in UK businesses.

As a small business owner running a limited company, you need to understand what’s changing, how it affects you, and what action to take.

What’s Changing?

Companies House has introduced mandatory identity check for:

Company directors
People with significant control (PSCs)
Anyone filing documents at Companies House

This is part of the new powers granted under the Economic Crime and Corporate Transparency Act 2023. The aim is to make it harder for criminals to set up fraudulent companies and to protect legitimate businesses. The identity verification provides more assurance about anyone setting up, owning, running and controlling companies in the UK.

Timeline of the Key Changes

Here are the key dates for the roll out of these changes:

8 April 2025: The new identity verification requirements came into effect on a voluntary basis
From 18 November 2025: Mandatory identity verification for all company directors and PSCs on incorporation and appointment
Existing directors will need to confirm they have verified their identity at the same time as they file their next confirmation statement, during a 12-month transition period
Existing PSCs will need to verify their identity within 12 months of the commencement of mandatory identify verification on 18 November 2025.

What Will You Need to Do?

You’ll need to verify your identity before forming a company or before taking on certain roles within a company.

There will be two main ways to do this:

Directly via Companies House: On 8 April 2025, Companies House launched a new service that allows individuals to verify their identity directly with Companies House through GOV.UK One Login. You can use the online portal with Identity documents such as a passport or driving licence.
Through an Authorised Agent: Companies House allows third-party corporate service providers such as accountants, legal professionals and company formation agents to apply to register as an Authorised Corporate Service Provider (ACSP). If your accountant is authorised, they can carry out the verification for you.

Once verified, you’ll get a unique identifier, and Companies House will confirm that you’ve passed identity checks. This will become a requirement for all company filings going forward.

What if You’re Already a Director?

You’ll still need to verify your identity, even if you’ve been a director for years.

If you don’t verify your identity, you won’t be able to:

Register a new company
Act as a director
File documents with Companies House
Comply with legal requirements as a PSC

And there could be penalties for non-compliance, including fines or restrictions on company filings.

What This Means for Small Businesses

If you’re a small company director, this is a legal requirement.

Here’s how it could affect your business:

Delays in forming companies if directors haven’t completed identity checks
Inability to file confirmation statements or other key documents
Greater accountability: Your verified identity links you to your business
Increased transparency: Clients and partners may view your verified status as a sign of trust

Tips for Small Business Owners

Get ahead of the game: Don’t wait until it’s urgent. Be ready to verify your identity from now.
Talk to your accountant: Clarified Accounting is an Authorised Corporate Service Provider and now offers this as an additional service at a reasonable cost. If we file your accounts or handle your confirmation statements, we can guide you through the process.
Keep your company records up to date: Make sure your director and PSC details are accurate so there are no delays with checks.

How We Can Help

As trusted UK accountants for small business owners, we can help you:

Understand the new rules in plain English
Verify your identity quickly as an authorised agent
Avoid costly mistakes or filing delays

The Companies House changes are designed to protect you and your business, but only if you take the necessary action. If you need help with this compliance matter, get in touch today and let’s make sure your company is fully prepared.

Disclaimer: This blog post is for informational purposes only and does not constitute a professional advice. Please consult with an Authorised Corporate Service Provider for personalised guidance.