ID for Companies House: What Directors Need to Know

Published byStephen Grant

12th September 2025

Stephen Grant from Wright, Johnston & Mackenzie's corporate team discusses the new and controversial Companies House ID changes.

There are a host of websites that require identity checks such as financial services – from online banking to investment platforms and payment services.

Set to join them is Companies House, which will soon introduce mandatory identity verification.

From 18 November 2025, directors, shareholders and persons with significant control will need to verify who they are under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

The purpose is to tackle fraud and bring greater transparency to UK corporate life. In practice, however, it is likely to involve a tangle of red tape and there are fears of delays as high volumes of applications pile in when this is mandated. There’s also potential for confusion between the Gov.uk portal and the Companies House page itself.

Until now, Companies House has been more like a self-regulating public noticeboard than a regulator. Almost anything filed was published with minimal scrutiny, and most errors on the register likely to be down to mistakes rather than deception. But in recent years its powers have been expanded, and mandatory identity verification marks a significant and very public change, with nothing being left to chance.

Even so, those intent on gaming the system are unlikely to disappear overnight. The real burden will fall on the vast majority of ordinary directors simply trying to comply.

The policy is designed to curb anonymous directorships and improve the integrity of the company register. The unanswered question is: what happens to those who fail to comply?

Will directors face fines? Criminal sanctions? Even the stripping of their powers? For now, the likelihood of ramifications remains unclear, and there are doubts as to whether the new regime will really keep dubious companies from slipping through the cracks.

What is clear is that seven million people will be affected, so directors would be wise to act early. Boards should begin auditing who in their organisations needs verification, make sure everyone understands the process, and consider completing checks well ahead of time. Professional advisers will continue to play an important role, especially where ownership structures are complex.

The rules will apply immediately to new directors, who must verify their identity at the point of incorporation or appointment. Existing directors will need to confirm their identity before filing their next annual confirmation statement, meaning that by 18 November 2026 every company on the register will have gone through the process. Persons with Significant Control will also need to verify themselves depending on their circumstances, with other roles phased in later.

Verification can be completed in two ways. Many directors will find the government’s new service straightforward. It is free and requires only a passport or driving licence, after which a personal verification code is issued. Directors with multiple companies need only complete the process once – but they must guard that code carefully, as it will not be emailed and cannot be reissued. (Let’s hope this quirk is ironed out during the voluntary period.)

Another option is to utilise an authorised corporate service provider like WJM which can assist, particularly where companies have international elements or directors who are less comfortable navigating digital systems.

Even for the digitally literate, frustrations are likely. Companies House’s website is becoming increasingly notorious for its sluggish load times and occasional outages. Multiply those glitches by millions of users and it is easy to imagine the bottlenecks. This is why early adoption matters: beat the rush, and you reduce your risk of being caught in the digital queue.

This article first appeared in The Scotsman