New Legal Requirement for Company Directors to Verify Identity

From 18th November 2025, all company directors and People with Significant Control (PSCs) will be legally required to verify their identity as part of reforms introduced under the Economic Crime and Corporate Transparency Act 2023. This will affect millions of individuals connected to UK companies.

If you are or will become a director or PSC, it’s important to understand what this change means, and when you’ll need to act by.

 

What is changing for Directors and PSCs

This reform introduces a brand-new duty to verify identity, either when you take on a role for the first time or as part of a transition period for existing roles. Here’s how it will apply:

  • New directors must verify their identity at the point of incorporation, or when appointed to an existing company.
  • Existing directors will need to confirm they’ve completed verification when filing their company’s next annual confirmation statement. This forms part of a 12-month transition window starting from November 2025.
  • People with Significant Control will also be required to verify their identity. The deadline will vary depending on whether they are also a director and their date of birth as recorded on the Companies House register.

 

Why are identity checks being implemented?

The government’s aim is to make the Companies House register more reliable, helping to reduce fraud and prevent misuse of company structures. By introducing mandatory identity checks:

  • It will be harder for individuals to hide behind fake names or false company appointments.
  • Transparency will increase across the business community, giving stakeholders greater confidence in company records.
  • The reforms will support the wider fight against economic crime, making the UK a safer place to do business.

 

Click this link for more information in our blog on the Economic Crime and Corporate Transparency Act (ECCTA).

 

How will the identity verification process work?

For most individuals this will be a one-off, straightforward process, but it is important to know your options.

  • Verification is expected to take only a few minutes in most cases.
  • You can complete the process using the government’s GOV.UK One Login, free of charge.
  • Alternatively, you can go through an Authorised Corporate Service Provider (ACSP), such as LWA, who can complete the checks on your behalf.
  • Once verified, you will be issued with a unique personal code (11 characters) which confirms your verified status. This code can then be used for future filings.
  • Acting as a director without being verified after the deadline will be considered a legal offence.

 

When do directors and PSCs need to act?

The exact timing depends on whether you are new to the role or an existing director or PSC. It’s important to make a note of the following deadlines:

  • New directors and PSCs appointed from 18 November 2025 must verify their identity within 14 days of being registered.
  • Existing PSCs who are also directors must confirm that their identity has been verified within 14 days of their company’s next confirmation statement date.
  • Existing PSCs who are not directors will have a 14-day window beginning on the first day of their birth month, for birthdays falling on or after 1 December 2025.
  • Companies House will also contact all companies directly by email with further details and guidance. From 18th November, you’ll be able to log in to Companies House to check your deadlines for each role you hold.

 

Support on new identity verification legislation for directors from LWA accountants

Identity verification is a major change for company directors and PSCs, but for most it will be a simple, one-off process. The key is to be aware of your responsibilities and act within the deadlines to avoid penalties.

If you have any queries or would like assistance in verifying through an Authorised Corporate Service Provider, please contact Nickie Antley-Slater, Tax Manager at LWA, who will be happy to guide you and your company through the new requirements. You can call 0161 905 1801 or 01925 830 830, or you can email mail@lwaltd.com with ‘Identity Verification advice’ in the subject field.