Companies House Reforms: Director Identity Verification Process

Big changes are on the way for UK companies — and this time, it’s not just about new paperwork or deadlines. As part of a broader effort to tackle fraud and increase transparency, the government is rolling out new rules that will affect every company director in the country.

At the heart of these reforms is a new requirement: company director identity verification. It’s a simple concept, but it has serious implications for how companies are run and registered going forward.

Let’s break down what’s changing, why it matters, and what you need to do if you’re a company director — or planning to become one.

What Is Identity Verification and Why Now?

One of the central features of the reforms is the introduction of company director identity verification. In short, if you want to be listed as a director of a UK company, you’ll need to prove who you are.

This move is designed to prevent fake or stolen identities from being used in company records — a tactic that’s often used in financial crime. It’s part of a wider push to clean up the register and give the public and authorities more confidence in the accuracy of company information.

Who Will This Apply To?

The identity checks won’t just apply to new company directors. Existing directors will also need to go through the process, although there will be a transition period to allow time for everyone to get on board.

Others who may need to verify their identity include:

• People with Significant Control (PSCs) over a company
• ACSPs themselves, since they’ll be acting as trusted intermediaries

It’s worth noting that this won’t be a one-off check. Companies House will also have more power to update or remove information if anything looks suspicious or incorrect.

What Should You Do Now?

Although the identity verification system isn’t live yet, it’s not too early to start preparing. Here are a few practical steps:

• Talk to your accountant – If you work with a company formation service or accounting firm, ask if they plan to register as an ACSP.
• Review your company details – Make sure the information held by Companies House is accurate and up to date.
• Inform your fellow directors – Everyone in your company’s leadership team should be aware of what’s coming.

Conclusion

The identity verification requirement might sound like a hassle, but it’s a step towards greater trust and credibility in the UK’s business environment. It helps protect legitimate companies from being undermined by fraudsters and strengthens the country’s reputation as a safe place to do business.

So while it’s another item on the compliance checklist, it’s one that makes sense. Get ahead of it now, and you’ll be in a much better position when the rules come into force.