Identity Verification Rules for Company Directors and PSCs Are Now in Force

How well do you really know the people behind a company?

As of 18 November 2025, that question will be answered with far greater clarity. The UK Government’s reforms under the Economic Crime and Corporate Transparency Act (ECCTA) are now live, introducing mandatory identity verification for company directors and Persons with Significant Control (PSCs).
These changes aim to increase transparency, reduce fraud, and strengthen trust in UK corporate governance. For directors, shareholders, and business owners, this marks a significant shift in responsibilities. Understanding what’s required now is essential to avoid non-compliance and keep your business running smoothly.

What’s Changed?

From 18 November 2025, the following rules apply:

• New directors must verify their identity before they can incorporate a company or be appointed to an existing one.
• Existing directors have a 12-month transition period and must verify their identity by the time they file their next confirmation statement.
• Existing PSCs who are also directors must verify within 14 days of the company’s next confirmation statement date.
• Existing PSCs who are not directors must verify within 14 days from the start of their birth month.

Failure to comply is now an offence, and individuals cannot lawfully act as directors until verified.

How Do You Verify?

Verification can be completed in two ways:

• Directly via GOV.UK One Login – free, quick, and available online.
• Through an Authorised Corporate Service Provider (ACSP) – such as accountants or legal advisers.

Once verified, you’ll receive a unique Companies House code, which must be provided for each company role you hold. In most cases, verification is a one-time process.

What Happens If You Don’t Verify?

Acting as a director without verification is now an offence and can lead to penalties, including an inability to make further filing, fines for the company and the individual director as well as potential disqualification. Companies House has indicated enforcement will be proportionate initially, focusing on guidance and support—but compliance is mandatory.

What Should You Do Now?

1. Review your records – Ensure Companies House filings are accurate and up to date.
2. Prepare for verification – Gather valid ID documents and decide whether to use GOV.UK One Login or an ACSP.
3. Update onboarding processes – Include identity verification for all new directors.
4. Communicate internally – Make sure all directors and PSCs understand the new requirements.

Why This Matters

These reforms are not just “red tape.” They are designed to protect businesses and the wider economy from fraud and misuse of corporate structures. Companies that act now will avoid disruption and demonstrate strong governance.

For tailored advice on compliance and practical steps, contact mlplaw’s Corporate team today.