UK corporate transparency reforms impose
new legal requirements on identity checks
📅 08/07/2025
Directors, major shareholders and senior managers of UK companies will soon be legally required to undergo identity verification as part of sweeping reforms under the Economic Crime and Corporate Transparency Act 2023, aiming to improve corporate transparency and combat economic crimes.
These changes will affect more than 7 million individuals who are currently on the Companies House registrars across England and Wales, Scotland and Northern Ireland, according to the UK government.
Currently, company directors and persons with significant control of a company (PSC) do not need to provide documents to verify their identities when setting up a new company in the UK. However, from autumn 2025, it will be compulsory for all directors and PSCs to verify their identity when incorporating a new company. The verification will require an official identification document, such a biometric passport of any country or a UK photo driving licence.
The same compulsory requirement will apply to new appointments of directors, company secretaries and PSCs from autumn 2025. They will need to verify their identities and obtain a unique identifier known as a Companies House personal code, linking their identity to all the roles they hold in different companies.
Existing companies are given a 12-month transition period and will be required to provide identity verification credentials for their directors and PSCs when their confirmation statement is due.
There are three ways for individuals to verify their identities for Companies House, including online via GOV.UK One Login, in person at a post office, and using an Authorised Corporate Service Provider (ACSP) - such as an accountant or solicitor. Failure to comply may result in financial penalties and restrictions on company filings.
Legal expert Rhea Yu of Thornhill Legal said that it is important for companies to start preparing for the changes now, particularly overseas companies looking to set up a UK presence.
“The imminent changes to make identity check compulsory means there will be more stringent transparency requirements for key personnels of UK companies. Digital identity verification will be a prerequisite for registering a new company in the UK in the coming months. Chinese companies, for example, should seek professional advice on how and when to implement the Companies House changes and provide required identity documents to ensure compliance,” said Yu.
More detailed on the verification process and implementation timelines can be found on the government’s website.