It will soon be compulsory for business directors across the UK to verify their identity at Companies House.  The exact date when this will become mandatory is not known at the time of writing but it is expected to be introduced from autumn 2025. Bernadette Young Co-founder and Director of Indigo Independent Governance provides SMEToday’s readers with some guidance.

There are around 7.8 million directorships in UK companies, and many others who are PSCs or LLP members. While some people hold multiple appointments and will only need to verify their ID once, an incredibly large number of people are expected to be affected by the changes.

Since 8 April, anyone currently running or looking to set up a limited company in the UK has been able to do this. However, the process is not widely known, and many business owners risk incurring penalties for failing to fulfil the new requirement when it becomes law.

Who will identity verification be mandatory for?

In most circumstances, identity verification will only need to be completed once. Those who need to do this are: 

• newly appointed directors and persons with significant control (PSCs)
• current directors and PSCs
• new and existing members of limited liability partnerships (LLPs)
• any person who submits filings to Companies House e.g. a company secretary.

The risks of non-compliance

There will be a transition period of up to 12 months for existing directors and PSCs to comply once the deadline is announced. But after that initial grace period, those found to be non-compliant will risk being fined.

Other potential impacts include companies being unable to select new directors if they have not been verified.

What do limited company directors need to do?

Current directors, LLP members and PSCs will have to provide a personal ID verification code from autumn 2025, when their company next submits its annual confirmation statement. The personal code is a special number that will be given to each individual who has undergone personal biometric identity verification.

New directors, PSCs, or LLP members appointed after autumn 2025 will also be required to provide this information, either during the appointment filing or when registering a new company.

How can they do this?

There are several options to complete the process.

1. Use an Authorised Corporate Service Provider (ACSP) (such as a company secretary or other adviser who has registered at Companies House to provide this service) to verify a person’s identity on the director’s behalf. Dedicated service offerings such as Indigo: Independent Governance’s ‘id-to go’ should project manage the required checks and communications and support directors who experience any difficulties, something particularly useful for businesses which have multiple directors, LLP members or PSCs to coordinate.
2. Submit an official I.D such as a passport, UK driving license, UK residence card or a UK working permit through the Government website. This will be a good option for very small companies is likely to be less convenient for businesses with several people subject to these requirements. Companies will have to keep track of which directors and PSCs have gone through the process or have yet to complete it and keep an eye on their filing deadlines to ensure they don’t miss their cut off date.
3. Submit an official I.D. in person at a Post Office. It’s worth remembering that anyone wishing to use this method will need to first use the ‘Verify your identity for Companies House’ service, and needing to present documents in person may prove problematic for non-UK residents.

The penalties of non-compliance are not worth risking

As autumn approaches, business owners up and down the country should be asking themselves if they are ready for self-verification. Complete the process early and act now to avoid last minute panics.

Bernadette Young Co-founder and Director of Indigo Independent Governance