Business Law specialist Frank Scott-Ashe explores the new identity checks for company directors and advises what you should do now.Contact Frank on 01225 462871 or complete the Contact Form below. |
New identity checks for company directors
As part of a wider crackdown on economic crime under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), Companies House will soon implement identity checks for company directors and persons with significant control (PSCs).
This requirement aims to improve transparency and prevent the misuse of UK company structures.
These changes form part of a broader initiative by the Government to reinforce the UK’s corporate framework. The ECCTA also encompasses:
- Enhanced data-sharing capabilities between Companies House and law enforcement
- Greater protection of personal data
- Enhanced safeguards to prevent fraud and misuse of company information
Together, these changes aim to make UK businesses more transparent, secure, and trustworthy. Identity verification and up-to-date company records will help to:
- Establish trust with clients, partners, and regulators
- Demonstrate your commitment to lawful and ethical business practices
- Safeguard your business against malicious actors
Who will need to verify their identity?
The new rules require the following people to verify their identity:
- All new and existing company directors
- People with Significant Control (PSCs)
- Anyone filing documents with Companies House on behalf of a company
These changes signify a significant shift in corporate governance, helping to ensure that company information is accurate and trustworthy.
How will the verification process work?
Those affected must provide biometric or photographic ID (e.g. a passport or photo driving licence). The check may be conducted either through Companies House or via an Authorised Corporate Service Provider (ACSP).
When does it start?
Although Companies House has yet to announce an exact start date, it is expected to be sometime during the autumn of 2025. There will be a transition period for existing companies. With that in mind, it is wise to begin ensuring all your company details are up to date before the new rules come into force.
New identity checks for company directors: What should you do now?
The first thing to appreciate is that this is not simply a quick box-ticking exercise. We strongly advise you to familiarise yourself with the new requirements and plan carefully how your business will comply.