Mandatory ID Verification ‘Good For Business’
Companies House says identity verification is “good for business”; and has confirmed that mandatory ID verification requirements is to be rolled out in phases from 18 November 2025.
Directors – and persons with significant control (PSCs) - must safeguard their position and understand how the new requirements will impact them.
The ID verification rules are just one strand of sweeping powers and responsibilities given to CH following the introduction of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Directors have been able to voluntarily verify their identity since the rules came into effect (CH says more than 300,000 had done so by early August).
Writing on the CH blog, a policy adviser says: “By linking verified individuals to their company roles and activity, we’ll be better able to spot suspicious patterns and respond to potential risks. It will also prevent unverified or false identities - such as fictional or deceased individuals - from being added to the register.”
She adds that ID verification will make it “much harder to use the register to create anonymous corporate structures that enable fraud, corruption or other criminal activity”.
What’s required?
The process for mandatory ID verification of individuals is intended to be simple and straightforward (it’s a one-off exercise) and the government expects it to help protect against fraud and facilitate a more accurate and trustworthy Companies Register.
Note that there is a 12-month transition period for full implementation; and it will be an offence to act as a director without being successfully verified.
Every company director, whether existing or newly-appointed, and every PSC will be expected to comply with the new ID verification requirements.
Existing directors and PSCs will need to confirm they have verified their identity at the same time as they file their next annual confirmation statement, during the 12-month transition period. Existing PSCs must do so in line with an appointed day within the transition period.
Four different routes will be offered, so there will be little excuse to claim an inability to comply.
The routes are:
· ID verification directly with CH or using an authorised corporate service provider (ACSP)
· Free via the gov.uk app or website
· At a post office (with a prebooked face-to-face verification appointment arranged via gov.uk)
Once your identity has successfully been verified, CH will send you a personal code. From 18 November 2025, you will need to provide this personal code and a verification statement confirming you have successfully verified your identity for each company role you hold.
CH says it estimates between 6m and 7m individuals will need to verify their identity by mid-November 2026. Companies will be contacted directly by CH to tell them what they must do to comply with the requirements, but CH is encouraging early ID verification. Individuals will have little excuse not to comply by November 2026.
If you would like us to cover an issue in the next NGM Tax Law Newsletter, we would be pleased to hear from you