A significant shift in corporate regulation came into force on 18 November 2025, as Companies House began enforcing identity verification for all new directors and people with significant control (PSCs). The move is part of the UK Government’s broader campaign to combat fraud, improve the reliability of company information and expose criminal networks using fake business fronts.
Backed by the Economic Crime and Corporate Transparency Act 2023, the new process is set to reshape how companies are set up, monitored and held accountable. Over 1.5 million individuals have already verified their identity since the launch of the voluntary scheme in April 2025. Now, that verification is mandatory.
Identity Verification Becomes Mandatory for Directors and PSCs
From 18 November 2025, any individual who becomes a company director or a person with significant control must verify their identity with Companies House. The change applies to all UK-registered companies and introduces a 12-month transition period for existing directors, who will be required to confirm verification when submitting their next annual confirmation statement.
According to Companies House, the verification process is “simple, secure and robust”, and can be completed in minutes using GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP). Most users will only need to complete the process once and will receive a personal code to confirm verification across multiple company roles. Verification through the government portal is free of charge.
Failure to comply with the new requirement is a criminal offence. Individuals who do not verify their identity on time may face financial penalties, court prosecution, or referral to the Insolvency Service, depending on the seriousness of the offence. According to Companies House, in cases involving fraudulent or organised criminal activity, the agency will apply its “strongest powers” in cooperation with law enforcement.
Boosting Business Trust and Dismantling Criminal Front Companies
The primary objective of the identity checks is to enhance the reliability of information on the public company register. This is expected to make it significantly more difficult to create or operate businesses using fake or stolen identities, an issue previously exploited by fraudsters and criminal organisations.
Security Minister Dan Jarvis stated: “Criminals are using fake companies as fronts for serious organised crime and they must be stopped.” He added that more than £300 million in criminal assets were recovered in the past year as part of intensified efforts to dismantle illicit networks.
The new measures also help regulators expose banned individuals operating under aliases or through proxy appointments. According to Small Business Minister Blair McDougall, the policy “marks a turning point in protecting honest businesses and hard-working consumers from fraud.” The enhanced transparency, he said, will “boost confidence, attract investment, and support our mission to grow Britain’s economy.”
The Institute of Directors and British Chambers of Commerce have publicly supported the reforms. In a statement, Jonathan Geldart, Director General of the Institute of Directors, called the identity checks “a vital step in tackling economic crime and improving trust in UK business”.
Meanwhile, Shevaun Haviland, Director General of the British Chambers of Commerce, noted the changes would “protect the names of good firms” and make it “harder for those with dishonest motives to set up a business”. The 12-month rollout will continue into 2026, with varying deadlines depending on each company’s status and registration details. Companies are being contacted directly, and can also check the Companies House register for compliance timelines.
