These reforms are designed to strengthen transparency, reduce corporate misuse, and enhance trust in the UK business environment.
If your company has directors, Persons with Significant Control (PSCs), or LLP members, you now need to ensure you understand and prepare for the new rules.
Who must verify their identity?
From this week, identity verification becomes mandatory for:
- All new directors of UK companies
- Existing directors
- Persons with Significant Control (PSCs)
- Members of LLPs
Some categories (such as corporate directors, corporate PSCs, and people who file on behalf of companies) will be brought into scope later.
How identity verification works
There are two approved routes:
1. Verify directly with Companies House
Using GOV.UK One Login and a valid identity document, such as a passport.
2. Verify through an Authorised Corporate Service Provider (ACSP)
This could be a formation agent, accountant, solicitor, or company-secretarial provider who is officially authorised to carry out verification checks.
Both routes must meet the same security standard.
Key deadlines for existing directors and PSCs
Existing directors
For individuals who are already directors before the rule comes into force this week:
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They must complete identity verification by the time of their company’s next annual confirmation statement,
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And this must occur within the 12-month transition period starting 18 November.
This means your exact deadline depends on your company’s confirmation statement date, but you should not wait until the last minute.
Existing PSCs (Persons of Significant Control)
The deadlines for PSCs vary depending on whether they are also directors:
- PSCs who are also directors follow the director rules above.
- PSCs who are not directors will have deadlines tied either to their company’s confirmation statement date or the first day of their month of birth.
This staggered timetable is designed to spread verification across the transition period.
Why are these rules being introduced?
The identity-verification requirement aims to:
- Prevent the misuse of UK companies for fraud and money laundering
- Ensure individuals controlling companies are who they claim to be
- Clean up and modernise the Companies House register
- Increase trust and accountability in UK business
These reforms represent one of the most significant changes to UK company law in decades.
What do companies need to do from the 18th November?
To stay compliant, companies should take the following steps now:
1. Identify everyone who must verify
List all directors, PSCs, and relevant LLP members.
2. Check ID documents
Make sure each person has a valid passport or other approved identification.
3. Choose how you’ll verify
Decide whether to use: Direct verification via Companies House or Verification via an ACSP (accountant, solicitor, formation agent, etc.)
4. Brief everyone involved
Explain the timelines — especially that existing directors and PSCs must meet their verification deadline linked to the next confirmation statement (or PSC rules).
5. Track and record compliance
Monitor who has completed verification and follow up with those who haven’t.
Risks of non-compliance
Failing to verify in time may lead to:
- Inability to file company information
- Financial penalties
- Directors or PSCs committing a legal offence
- Operational delays and reputational issues
Early verification avoids unnecessary risk.
Final thoughts
With identity-verification rules going live this week, business owners need to act quickly. Understanding the deadlines, especially for existing directors and PSCs, is essential for keeping your company compliant.
Starting early will make the transition smooth, prevent filing issues, and help ensure your business is ready for a more transparent era of UK company law.
