Insights

As part of its ongoing efforts to enhance corporate transparency and combat economic crime, the UK government has introduced new identity verification requirements for company directors and individuals with significant control (PSCs). These changes, set to take effect from April 2025, will impact all UK businesses, directors, and beneficial owners.

What’s Changing?

Starting from 8 April 2025, company directors and PSCs will be required to verify their identities. Initially, verification will be voluntary, but from Autumn 2025, it will become mandatory for all new appointments and company incorporations. Existing directors and PSCs must complete verification by Autumn 2026, with a 12-month transition period for compliance.

This reform, introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), aims to improve the accuracy of information held by Companies House and prevent fraudulent activities linked to corporate structures.

Key Dates to Remember

• 8 April 2025 – Voluntary identity verification begins for directors and PSCs.
• Autumn 2025 – Mandatory identity verification for all new appointments and incorporations.
• Autumn 2026 – Deadline for existing directors and PSCs to complete verification.

To streamline the identity verification process, only Authorised Corporate Service Providers (ACSPs) will be permitted to verify identities and submit information to Companies House.

What is an ACSP?

ACSPs are professional service providers, such as accountants, solicitors, and company formation agents, registered with a UK anti-money laundering (AML) supervisory body. They are authorised to verify identities and file official documents on behalf of their clients.

Steps for Compliance

To remain compliant with the new Companies House requirements, the following steps are recommended:

1. Identify Verification – Company directors and PSC, will be required to complete the identity verification process within the required timeframe.
2. Appoint an ACSP – An ACSP can assist with identity verification and handle all necessary filings with Companies House.
3. Ongoing Updates – Staying informed and updated on any changes to the verification process will help ensure a smooth transition to compliance.