Identity verification rules now in force: what you need to know

The new mandatory identity verification (IDV) rules for company directors, Persons with Significant Control (PSCs), and certain other roles are now fully in force. These rules were introduced as part of the Economic Crime and Corporate Transparency Act 2023 and form part of the Government’s drive to improve corporate transparency and prevent fraud.

Here’s what this means for your business and how Companies House plans to enforce compliance.

What are the new rules?

From 18 November 2025, anyone acting as a company director, LLP member or PSC must verify their identity with Companies House.

This applies to:

• new appointments: Directors and LLP members appointed must verify before the relevant company or LLP is incorporated or before their appointment to an existing company or LLP

• existing roles: existing directors and LLP members must verify by their next confirmation statement deadline

• New PSCs: PSCs will need to verify within 14 days of their registration as a PSC at Companies House

• Existing PSCs: existing PSCs of companies must complete IDV within 14 days of their month of birth as shown on the register (or, if they are also a director of the relevant company, within 14 days of the company’s confirmation statement).

Timeframes in relation to existing PSCs of LLPs are yet to be confirmed.

How to verify:

Verification is completed online using GOV.UK One Login or through an Authorised Corporate Service Provider. You’ll need official ID (such as a biometric passport or photo driving licence) to complete the process. Successful IDV will generate a unique personal code which will then need to be submitted to Companies House in line with the timeframes above.

Companies House’s enforcement approach

Non-compliance can lead to financial penalties, criminal prosecution, and removal from the register.

However, Companies House has published its enforcement strategy, which focuses on education first but escalates where necessary.

1. Inform and support

Individuals will be provided with:

• guidance via emails, letters, webinars, and online resources
• reminders ahead of filing deadlines to prompt compliance
• pausing enforcement where representations are received due to genuine exceptional circumstances.

2. Escalation for non-compliance

If reminders are ignored, Companies House will take formal action.

• Default warning letters: sent after missed deadlines.
• Financial penalties: for individuals and companies.
• Criminal prosecution: for repeated or serious breaches, which may lead to convictions and director disqualification.
• Registry actions: including annotations, forced filings, or removal from the register.
• Referrals: cases may be passed to the Insolvency Service or law enforcement for fraud or aggravated breaches.

3. Fraudulent activity

The strongest enforcement measures will be triggered where evidence of fraud or criminal activity is found, including by working with law enforcement partners to prosecute.

What should you do now?

• Verify early: don’t wait until your filing deadline.
• Stay informed: watch for Companies House emails and updates.
• Seek help if needed: professional advisers can manage verification and compliance for you.
• Act quickly on reminders: avoid penalties and legal risk.

Please reach out to our corporate team should you have any queries regarding the identity verification process.