November 2025 Update
Following the introduction of Companies House’s new identity verification service on GOV.UK in early 2025, the government has now outlined how the agency will enforce the mandatory ID requirements.
For individuals who fail to comply with the new rules, Companies House has developed a five-level compliance framework, which reflects the degree of effort required to achieve compliance:
- Level 1: Compliant – no effort required
- Level 2: Compliant with support – minimal effort required
- Level 3: Disregard for compliance – considerable effort required
- Level 4: Non-compliant – significant effort required
- Level 5: Seriously or serially non-compliant – very significant effort required
A more detailed explanation of each level, including examples of behaviours that may fall within them, can be found here.
Companies House will tailor its response to non-compliance based on this framework. As non-compliance become more frequent or severe, the agency may escalate its actions and set out stronger enforcement powers when necessary.
Depending on the level of non-compliance, Companies House may:
- provide written information and advice to help companies to be compliant
- issue financial penalties
- pursue a civil case
- pursue a criminal prosecution
- refer a case to other agencies
More information on Companies House approach to non-compliance with mandatory identity verification can be found here.
If you have any questions about the new identity verification requirements or how the enforcement framework may affect your business, our team at Bailoran Solicitors are here to help. Please contact us at info@bailoransolicitors.com or on 0113 266 0735 to speak to one of our legal experts.
Original Article: Directors Update – New identity requirements for company directors.
On April 8th, Companies House launched a new identity verification service via GOV.UK, marking a major step in the UK’s fight against corporate fraud. This reform aims to ensure greater clarity over who is setting up, managing, or controlling companies, while helping prevent the misuse of false or misleading information for illegal purposes.
Introduced as part of the Economic Crime and Corporate Transparency Act 2023, the new identity requirements will be rolled out in stages, according to the following timeline:
18th March 2025: Third-party providers are able to register as an Authorised Corporate Service Provider
8th April 2025: The new identity requirement comes into effect on a voluntary basis
Autumn 2025: Mandatory identification verification for all new directors and people with significant control (PSCs) upon incorporation and appointment
12-month transition period: Existing directors and PSCs must complete verification by Autumn 2026
Who will need to register?
- All new directors and people with significant control (PSCs)
- All existing directors and PSCs
- Anyone acting on behalf of a company
Why do I need to register?
The enforcement of identity verification through Companies House strengthens UK law in preventing the use of false identities, making it harder for fraudulent individuals to create or operate companies. It is hoped this will enhance trust and transparency within the UK business environment.
The legal requirement to register should facilitate easier enforcement by Companies House, allowing them to take more effective action against those who use the system for illegal purposes.
How can I register?
There are two routes for identity verification;
1. Direct verification with Companies House
This can be done through the GOV.UK login where you can either use the GOV.UK ID check app, answer security questions online or take ID documents to the Post Office.
2. Verification by a Companies House authorised agent, referred to as an ‘authorised corporate service provider (ACSP)
Alternatively, you can use an ACSP to carry out ID verification, for example an accountants or solicitors. When an agent has agreed verify identity on your behalf, you will need to provide documents from an approved list as evidence of your identity.
What will happen after identification verification has been carried out?
Once verified, you will be issued a unique identification number by Companies House. This number will be used for all appointments and filings across companies you are associated with.
From autumn 2025, you will need this number when:
- Filing confirmation statement
- Being appointed as a director
- Being recorded as a person with significant control (PSC)
What are the consequences of failing to register?
Failing to register will mean you are unable to:
- Make any filings
- Start a company or entity
- Register as an ACSP
Non-compliance with mandatory verification after the transition period has ended will be an offence and may lead to:
- Financial penalties
- Fines
- Disqualification as a director
What steps should I take now?
As a director, you must include your unique ID in your company’s next confirmation statement once you receive it. For new directors appointed after autumn 2025, it must be included in the appointment filing or incorporation documents.
Final comments
The identity verification process is intended to be straightforward and quick, and will improve the accuracy and integrity of company records held by Companies House. The government provides more information on the identification process on its website at GOV.UK.
At Bailoran Solicitors, we understand that directorial duties can be complex and, at times, confusing. We’re here to help. If you have any concerns about your role or responsibilities as a director, or about how a company is being operated generally, please contact us at info@bailoransolicitors.com or on 0113 266 0735 to speak to one of our legal experts.
Please note that this article does not constitute legal advice.