Identity Verification for Directors and PSCs: What You Need to Know

3 Feb

What’s Changing?

Starting in 2025, all company directors and people with significant control (PSCs) must verify their identity before being registered with Companies House. This reform, introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023), aims to combat fraud and increase transparency.

At Asserson, we are preparing to register as an Authorised Corporate Service Provider (ACSP), allowing us to verify identities for our clients.

Why Is Identity Verification Being Introduced?

Currently, UK companies can be set up with little verification, making it easier for fraudsters to register shell companies for money laundering and financial crime. The new system ensures that only legitimate individuals can hold key roles in UK businesses.

By requiring identity checks at the point of incorporation, the government aims to prevent fraud before it happens, rather than addressing it after the fact.

Key Dates to Know

• February 2025 – Companies House begins authorising ACSPs.
• March 2025 – Voluntary identity verification opens.
• Autumn 2025 – Mandatory identity verification begins for new directors and PSCs.
• Spring 2026 – All individuals filing at Companies House must be verified.
• End of 2026 – Full enforcement begins, with penalties for non-compliance.

Who Needs to Verify Their Identity?

✔ Company Directors – Must verify identity before appointment.
✔ People with Significant Control (PSCs) – Those owning or controlling more 25% of a company (and in some situations having other significant influence or control).
✔ Presenters – Individuals submitting filings to Companies House.
✔ Third-Party Agents – Solicitors, accountants, and company formation agents must register as ACSPs.

How Will Identity Verification Work?

Verification will likely be a digital process, using government-approved ID (such as a passport) alongside facial recognition technology. An alternative manual verification process will be available for those unable to verify online.

If your company works with a third-party service provider, only an ACSP will be authorised to handle verification on your behalf.

What Happens If You Don’t Comply?

❌ Unverified directors cannot be appointed.
❌ Fines and penalties may apply for non-compliance.
❌ Companies House will have stronger enforcement powers.

How We Can Help

As an ACSP, Asserson will be able to:

✔ Verify directors and PSCs during company incorporation.
✔ Assist with compliance for existing businesses.
✔ Provide ongoing guidance on Companies House requirements.

We make compliance simple so you can focus on running your business.

What You Should Do Now

📌 Directors & PSCs: Ensure your records are up to date.
📌 Companies: Identify who in your business needs to verify their identity.
📌 Third-Party Agents: Register as an ACSP early to avoid disruption.

For more information please contact the Corporate Team: Corporate Law | Asserson