Navigating UK Identity Verification reforms: What businesses should know?

Economic crime and corporate fraud pose a significant threat to businesses and economies alike. With the introduction of recent ECCTA reforms in the UK, anyone setting up, running, owning, or controlling a company will be required to verify their identity to confirm they are who they claim to be, strengthening compliance and transparency across the corporate landscape. This article will explore what businesses need to know about the UK’s new identity verification reforms, including how individuals can verify their identity either through the GOV.UK One Login using official ID documents, such as a passport, or via an Authorised Corporate Service Provider (ACSP). ACSPs are individuals or organisations carrying out anti-money laundering (AML) supervised activities – —such as company formation agents, solicitors, accountants, or chartered secretaries and governance professionals – and their role will be central to the updated compliance process.

Why Identity Verification is crucial in combating economic crime 

Identity verification underpins the fight against fraud, money laundering, and other forms of economic crime. As part of wider corporate transparency reforms, the UK government expects more than seven million individuals to undergo identity verification checks this year. These measures aim to close loopholes that bad actors exploit, protecting both businesses and their stakeholders.

Justin Madders MP, Minister for Employment Rights, Competition and Markets, has stressed that with economic crime on the rise, introducing safeguards to prevent online identity theft is essential. The latest reforms mark a major step toward making identity verification mandatory for anyone establishing or managing companies on the Companies House register, the UK’s register of businesses, later this year. By ensuring trusted identification systems are in place, these changes strengthen economic integrity, foster a culture of accountability across all sectors, and reduce opportunities for financial misconduct.

“Identity verification will play a key role in giving confidence to investors and consumers alike, ensuring greater transparency about the organisations they do business with.”

Justin Madders MP, Minister for Employment Rights, Competition and Markets Secretary of State (United Kingdom)

Key deadlines for businesses 

Understanding the timeline of the new identity verification requirements – and securing your Companies House personal code well before the surge of applications ahead of the mandatory deadline – is a crucial step for businesses aiming to stay compliant.

Starting on November 18, 2025, identity verification will become a legal requirement for all company directors and Persons with Significant Control (PSCs) in the UK.

• New directors must verify their identity before incorporating a company or being appointed to an existing one.
  
• Existing directors will need to confirm they have completed identity verification when filing their next annual confirmation statement, within a 12-month transition period.
  
• Existing PSCs must verify their identity within 12 months of the start date, in line with the appointed day set out by Companies House.
  

This change affects more than seven million current directors and PSCs and marks a major shift in corporate transparency requirements. The rollout of identity verification is expected to strengthen business confidence and support growth by increasing assurance over who is setting up, running, and controlling companies in the UK. Companies of all sizes will benefit from more accurate and trustworthy register data, as well as greater protection against fraud.

By Spring 2026
Identity verification will become mandatory for anyone presenting documents for filing, and third-party agents filing on behalf of companies will be required to be registered as an ACSP. Companies House will also reject filings from disqualified directors unless submitted by an ACSP for legally permitted purposes.

By the end of 2026
All individuals on the register will be required to have verified their identity, completing the transition period. Compliance action will begin against those who fail to meet the requirement. Limited partnerships will also be required to submit additional information to improve transparency, and Companies House will increase cross-checking of information with other public and private sector bodies.

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Preparing for the reforms 

With major changes taking effect from November 18, 2025, businesses must act now to prepare. A proactive approach is key to avoiding penalties, safeguarding business continuity, and adapting seamlessly to the new compliance framework. Under the Economic Crime and Corporate Transparency Act—and in line with the confirmed Companies House identity verification rollout—companies should review their obligations, identify all individuals who require verification (such as directors and Persons with Significant Control), and begin gathering the necessary documentation without delay. Failure to comply could lead to significant consequences, including financial penalties, operational restrictions, potential criminal liability for directors and officers, reputational damage, and heightened regulatory scrutiny. Taking early action not only ensures a smooth transition but also reinforces a company’s commitment to transparency and good governance.

Final thoughts 

The UK’s new identity verification reforms mark a pivotal step toward combating economic crime and fostering corporate transparency. 

With the compliance deadline rapidly approaching, companies must ensure they meet the upcoming compulsory requirements – either via the Gov.UK One Login Service or through a registered ACSP.

Acting early is essential to avoid potential disruption, financial penalties, or reputational damage. In a regulatory environment built on transparency, those who prepare and adapt ahead of time will always remain a step ahead.