Devil in the detail with new identity checks for directors

Company directors are being urged to prepare for a major change, as Companies House introduces new identity checks for those setting up, running or owning UK businesses.

The new identity verification requirements, introduced under the Economic Crime and Corporate Transparency Act 2023, are being rolled out in stages and will soon become compulsory.  Companies are being advised to check their records are accurate and up to date ahead of the formal rollout, as mismatched information could prevent successful verification, leading to penalties and blocked filings.

Anyone who is a company director, person with significant control (PSC), or who files on behalf of a company will need to go through identity verification, either through the GOV.UK One Login or by using an Authorised Corporate Service Provider - a registered agent that must be supervised for anti-money laundering purposes, such as an accountant or solicitor.

“Companies should check that the personal details listed for each director and PSC are accurate,” said Anna Horrell, Head of Corporate and Partner at Chattertons Solicitors. “If anything doesn’t match the ID document, you won’t be able to complete the verification process when it becomes mandatory.”

As well as providing the necessary ID documentation and answering knowledge-based security questions, personal details will be checked, including full name, any former names, residential address, including previous addresses if less than 12 months, date of birth, and a valid e-mail address not used by anyone else for verification.

The move is part of wider efforts to clamp down on fraud and improve transparency in the UK’s corporate landscape. In future, unverified individuals will not be allowed to make filings, and companies that fail to comply may face financial penalties or further enforcement action.

Anna added: “We don’t yet have a firm timeline for the new rules, but we expect compulsory identity checks will be in place by the autumn. When that happens, directors will have a limited window to comply.  

“For government, this is a proactive step towards tackling economic crime, but for legitimate businesses it’s just good housekeeping. Getting your records in order now and verifying your identity voluntarily will help you stay compliant and avoid disruption ready for when it becomes a legal obligation.”

Company records can be checked and updated via the find and update company information service on the Companies House website. Some changes can be made online, but others — such as correcting incorporation errors — must be made using paper forms.

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This is not legal advice; it is intended to provide information of general interest about current legal issues.