As the business landscape continues to evolve, staying compliant with the latest regulations is crucial. One such regulation is the Companies House identity verification, a pivotal aspect introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This regulation is set to be mandatory from autumn 2025 and signifies a new era of corporate transparency and governance in the UK. In this blog post, we delve into the intricacies of Companies House identity verification requirements, and how they impact businesses and individuals associated with UK companies.
Important Milestones and Implementation Timeline
The implementation of Companies House identity verification is planned to occur in phases, starting in spring 2025, with full compliance expected by 2027. It begins with an optional identity verification phase from 8 April 2025, for individuals. By autumn 2025, it will be mandatory for all new directors and Persons with Significant Control (PSC) to complete their identity verification. Existing directors and PSCs are granted a 12-month grace period to ensure compliance.
Fast forward to spring 2026, identity verification will be a prerequisite for filing any documentation with Companies House. Additionally, third-party filers need to register as an Authorised Corporate Service Provider (ACSP) to submit documents on behalf of a company.
Who Must Verify Their Identity?
The scope of Companies House identity verification extends to a wide array of individuals associated with companies. This includes new and existing directors, PSCs, and any representatives acting on behalf of a company. Essentially, anyone involved in the establishment, management, ownership, or control of a UK-registered company must verify their identity. This broad scope underscores the significance of the verification process in enhancing corporate transparency.
Methods for Identity Verification
When it comes to verifying identities, there are two main avenues:
GOV.UK One Login: From the 8th of April 2025, individuals can utilise the GOV.UK One Login service. This can be executed via the ID Check app, through the main gov.uk site, or using a face-to-face service at designated Post Office branches.
Authorised Corporate Service Provider (ACSP): Since the 18th of March 2025, sole traders and firms supervised by a relevant anti-money laundering body have the opportunity to become ACSPs. As certified providers, they are authorised to verify identities and file documents with Companies House on behalf of companies.
The Implications of Non-Compliance
Failing to adhere to the Companies House identity verification requirements can result in serious repercussions. These include financial penalties and significant hurdles in making company filings or forming new companies. Therefore, it is imperative for businesses and individuals to remain informed about these requirements and make timely preparations for compliance.
For businesses seeking expert guidance on navigating these changes, consulting experienced corporate and commercial teams like those at DSW Tax Advisory can be invaluable. They offer insights that ensure you not only meet regulatory requirements but also optimise your corporate governance strategies.
Disclaimer: This information serves as a general guide and should not be substituted for legal advice. For legal concerns, it is advised to consult a professional.
Stay informed with DSW Tax Advisory for the latest updates and insights on Companies House identity verification and other pertinent corporate governance topics.
