The Economic Crime and Corporate Transparency Act 2023 (ECCTA) makes significant changes to UK law and is aimed at tackling economic crime and making UK-registered entities more transparent.
One big change is that certain individuals will need to formally verify their identity with Companies House. This note discusses what this means and what you need to do.
Who needs to verify their identity?
You'll need to complete the identity verification process if you're an individual and fall into one of these categories:
- a director of a company registered in the UK (England and Wales, Scotland, or Northern Ireland);
- a member of a UK limited liability partnership (LLP);
- a Person with Significant Control (PSC) of a UK company or LLP;
- a director of an overseas company with a UK establishment.
Identity verification is a one-time process for the individual. Once verified, individuals do not need to re-verify for each role they hold or otherwise re-verify on a periodic basis.
When do I need to verify my identity?
It is possible to verify your identity now on a voluntary basis (see below for more detail on how you can verify your identity).
Compulsory ID verification will become mandatory on 18 November 2025.
When the new ID verification rules come into effect:
- New appointments: All newly appointed
directors and individual members of LLPs must complete identity
verification before they begin acting in their role. It is an
offence to act as a director or member of an LLP unless an
individual's identify is verified and Companies House must be
notified within 14 days of the appointment. When submitting a
notice of appointment to Companies House, the filing must confirm
that the individual's identity has been verified and must
include their unique verification code. This code is issued by
Companies House upon successful completion of identity
verification. PSCs are subject to a slightly different process.
Notice of new PSCs must be filed with Companies House and may
confirm at that time whether the individual's identity has been
verified. If identity verification is not confirmed, Companies
House will contact the PSC directly, who must then complete the
verification process within 14 days.
- New incorporations: For any new UK company or
LLP incorporation, all individual directors and members must be
verified before registration. The incorporation application must
confirm that all applicable individuals have completed ID
verification and include the individual's unique verification
code. Again, PSCs are treated slightly differently: a company may
choose to confirm a PSC's verification on incorporation. If
not, Companies House will contact the PSC, who must then confirm
their identity is verified within 14 days.
- Existing roles – transition period: A
12-month transition period will apply for existing directors and
members. However, not all companies and LLPs will benefit from the
full 12 months. Each UK-registered company or LLP must comply by
the time its first confirmation statement is due after the new
requirements take effect. The situation is slightly different for
PSCs. If an individual is a director and PSC of the same company,
the PSC must complete their ID verification and provide their
unique verification code to Companies House within 14 days of the
company's confirmation statement date. If an individual is a
PSC but not a director of the same company, they must provide their
unique verification code within the first 14 days of their birth
month.
- Overseas companies: A new director of an overseas company with a UK establishment, while in the UK, must not act as a director of a company in respect of the affairs of the UK establishment unless their identity is verified. Confirmation of verification must be given to Companies House within a 21-day period. There is a transition period for existing directors. Confirmation of a director's ID verification must be notified to Companies House by the date of the first anniversary of the UK's establishment that falls after the regulations requiring ID verification come into force.
As above, once an individual's identity has been verified, a unique verification code will be issued. This code will be essential for various Companies House filings, including the first confirmation statement after 18 November 2025, registering a new company and registering as a PSC.
Are there any exemptions from identity verification?
There are only limited circumstances where a person will not be required to ID verify, for example, in the interests of national security or to prevent serious crime.
How do I ID verify?
There are three ways to verify your identity:
1. Online via GOV.UK One Login
You can verify your identity using the GOV.UK One Login app or
website. To do this, you will need a specific form of photographic
ID, such as a biometric passport (from any country) or a UK photo
driving licence. This is a free and user-friendly service. Most
individuals required to verify their identity are expected to use
this method. (See our short guidance note here for help.)
2. At a UK Post Office
If you are unable to use the online service and live in the UK, you
may be able to verify your identity at a participating UK Post
Office.
3. Through an Authorised Corporate Service Provider
(ACSP)
You can also choose to have your identity verified by a
UK-registered ACSP. You will need to provide specific documents for
verification, and the provider may charge a fee for this
service.
What should I do now?
With mandatory verification commencing 18 November 2025 we recommend you:
- Review your records to identify individuals who will need to verify their identity.
- Check your confirmation statement due dates on or after 18 November 2025 to ensure compliance.
- Raise awareness internally of the ID verification requirements for new and existing appointments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
