A major shift in UK corporate transparency has arrived, fundamentally changing how company directors and owners prove who they are. Starting Tuesday, 18th November 2025, mandatory identity verification is now in effect for all company directors and people with significant control (PSCs) at Companies House.
This landmark change, enacted under the Economic Crime and Corporate Transparency Act 2023, moves the UK's company register from a largely self-reporting system to one with verified identities at its core. For the nation's small business owners, this is a critical legal requirement with significant consequences for non-compliance.
What the New Verification Rules Entail
The new regime requires every individual in a key company role to confirm their identity. This applies to anyone becoming a new director or PSC from 18th November onwards, who must complete verification before their appointment is officially registered.
For the hundreds of thousands of existing directors and PSCs already in post, a transition period of 12 months has been granted. Compliance is typically expected when the company files its next confirmation statement, a routine annual check.
Once successfully verified, each person receives a unique personal code from Companies House. This code is permanently linked to the individual, not to any specific company. It must be used for all future filings, including confirmation statements, new director appointments, and PSC registrations.
Acting as a director without completing verification is now a criminal offence, carrying potential penalties including substantial fines, director disqualification, or even prosecution for more severe breaches.
A Practical Guide for Small Business Compliance
For small business owners and directors, taking prompt and correct action is essential. The primary and most straightforward verification method is through the government's GOV.UK One Login service, which is free to use.
Alternatively, business owners can use an Authorised Corporate Service Provider (ACSP), such as their accountant or company formation agent, to manage the verification process on their behalf.
Upon verification, safeguarding your personal Companies House code is crucial. This code will be required for all your corporate roles and filings. New directors joining a company after the 18th November deadline must provide their code during the appointment process.
Existing directors should be prepared to submit their code when filing their next confirmation statement. PSCs have slightly different deadlines; those who are not directors generally have 14 days from the start of their birth month to complete verification.
With strict deadlines in place, businesses should plan ahead to avoid last-minute rushes. Missing the verification window can trigger compliance issues, financial penalties, and legal complications.
Broader Impact: Building Trust for Businesses and Consumers
This significant reform addresses long-standing criticisms that the UK companies register contained false identities and so-called 'ghost directors'. In past notorious cases, companies were registered under clearly fictitious names, undermining the system's integrity.
By implementing robust identity checks, Companies House aims to create a more transparent and trustworthy business environment. This enhanced credibility benefits not just the regulatory bodies but the entire commercial ecosystem.
For consumers, the changes mean that when they check a company's details on the official register, they can have greater confidence that the directors listed are genuine, accountable individuals. This reduces the risk of dealing with fraudulent entities or shell companies designed to obscure ownership.
The improved data quality also strengthens relationships between small businesses and their partners, suppliers, and potential investors. With verified leadership, companies may find it easier to attract investment and form reliable partnerships, ultimately contributing to a healthier, more secure business landscape for everyone involved.
