Director’s ID Verification in the UK: What You Need to Know

What this is: The Economic Crime and Corporate Transparency Act 2023 brings in mandatory identity verification for directors, officers and persons with significant control (PSC), starting April 2025.

What this means: This reform gives Companies House new powers to tackle fraud and improve transparency, with millions of UK companies now required to verify key individuals.

In 2025, the UK is clamping down on corporate anonymity with a new rule: mandatory identity verification for company directors, responsible officers and persons with significant control. This stems from the Economic Crime and Corporate Transparency Act 2023 (ECCTA), a hard-hitting law passed in October 2023, to fight money laundering, fraud, and illicit finance. ECCTA is transforming Companies House into a proactive custodian of company data. The objective is ensuring that the directors are real people—not aliases or fakes. As of April 01, 2025, this rollout is in motion, promising a more transparent UK business scene. Here’s what you need to know.

The ECCTA: A Game-Changer

The ECCTA isn’t just tinkering—it’s a full reset. Companies House, once a passive filing cabinet, now has powers to verify data, ditch fraudulent firms, and liaise with law enforcement. Director ID verification is central, targeting the shell company tricks that have long plagued the system. It’s an important step to rebuild trust in corporate Britain, and it’s happening now.

What’s Changing?

Starting April 8, 2025:

• New directors and PSCs: Voluntarily verify identity before registering a company or role.
• Existing directors and PSCs: Over seven million people get from Autumn 2025 to Autumn 2026 to comply.
• Filers: Agents filing with Companies House must verify by Spring 2026.

There are no exceptions to this requirement.

How Will It Work?

You’ve got two ways to verify:

1. Directly with Companies House: Use the GOV.UK One Login service, available voluntarily from April 8, 2025. With a photo ID (passport, driving licence), you can:
   • Scan your face via the ID Check app.
   • Answer security questions online (UK docs only).
   • Visit a participating Post Office. You’ll get a unique personal code linking you to your roles
2. Via an Authorised Corporate Service Provider (ACSP): These are UK-based professionals—like company formation agents, accountants or lawyers —registered with Companies House and supervised under anti-money laundering (AML) rules. To qualify as an ACSP, they must:
   • Be regulated by bodies like the Law Society or HMRC for AML compliance.
   • Register with Companies House (effective March 18, 2025).
   • Verify their identity upon registration.

Identity Verification is a one-off process unless their details change (e.g., lost code). Companies House aims for speed with One Login, while ACSPs offer personalised support.

Why It Matters

The ECCTA wants to eliminate fake directors—think “Mr. A. Nonymous” or “Jesus, Holy Christ” etc. Linking real identities to companies shields honest firms and investors from scams. There could be some initial difficulty with compliance especially for directors and PSCs based overseas. However, partnering with a reputable ACSP could make this compliance process simple for your directors.

What Happens If You Don’t Comply?

Skip this, and:

• Directors: Can’t act, risking fines or disqualification.
• Companies: Can’t file with public flags on the register.
• Penalties: Civil or criminal sanctions await.

How to Prepare

• ID check: Got a passport, driving licence, or biometric permit? Ensure it’s valid.
• Records current?: Update your director/PSCs details at Companies House.
• Start early: Verify from April 2025, to avoid the 2026 rush.
• Ask your pro: Work with a reputable ACSP.

The Bigger Picture

The ECCTA’s reforms, including ID verification via One Login or ACSPs, are the biggest shake-up to Companies House since 1844. It’s about fortifying the UK against economic crime while keeping it business-friendly.

With millions to verify by Autumn 2026, don’t wait—whether you go direct or choose an ACSP, prepare now to stay compliant.

This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.