Major changes to UK company law are coming in 2025, introducing mandatory identity verification (IDV) for anyone who sets up, runs, owns or controls a UK company. Under the Economic Crime and Corporate Transparency Act (ECCTA), both company directors and Persons with Significant Control (PSCs) must prove their identity before they can be listed on the Companies House register.
If you’re a director or PSC, here’s what the new rules mean, and how to stay compliant.
Why is Companies House making IDV mandatory for company directors and PSCs?
The Companies House has introduced mandatory identity verification (IDV) for directors and persons with significant control (PSCs) to ensure the individuals behind UK companies are who they say they are. With the rollout beginning 18 November 2025, this move addresses long-standing weaknesses in the UK business register, where fictitious or stolen identities have been used to form companies, appoint bogus directors and facilitate economic crime.
By GOV.UK requiring every director and PSC to verify their identity and obtain a unique personal code, the register becomes far more reliable, transparent and trustworthy. That bolsters investor confidence and reduces the risk of shell companies being used for money-laundering, fraud or disqualified directors hiding behind false identities.
Who needs to verify their identity?
From spring 2025, the following individuals must complete identity verification:
- Company directors of any UK limited company
- Persons with Significant Control (PSCs) – anyone who ultimately owns or controls a company
- Designated LLP members
- Anyone filing documents on behalf of a company (accountants, company secretaries, formation agents)
PSCs are a key focus of the reforms because they control ownership and major decision-making — making accurate verification essential for preventing fraud, false filings and hidden beneficial ownership.
If you become a director or PSC after the new rules take effect, you must verify before your appointment can be registered. Existing PSCs and directors will have a 12-month transition window.
How identity verification works for directors and PSCs
Both directors and PSCs will complete identity verification either:
1. Directly with Companies House
Using GOV.UK One Login, you’ll upload an identity document and complete a photo/video likeness check.
2. Through an Authorised Corporate Service Provider (ACSP)
This includes accountants, law firms, company-formation agents and compliance providers. They will verify your ID using approved digital methods and pass the verified status to Companies House.
Once you’re verified, you’ll receive a unique identity number that links to all your roles across every company you’re involved with.
What happens if a director or PSC doesn’t verify?
Failure to verify your identity has serious consequences:
- The appointment of a director or PSC may be rejected
- Acting as an unverified director or PSC may be an offence
- The company may also be in breach
- Companies House may annotate the public register to show an unverified PSC or director
- Certain filings may be blocked or delayed
This makes IDV essential for anyone who wants to continue acting legally as a director or PSC.
How ID-Pal helps directors and PSCs meet the new verification rules
ID-Pal gives companies and service providers a secure, intuitive and compliant way to verify directors and PSCs without manual admin or delays.
With ID-Pal you can:
- Verify directors and PSCs in minutes using biometric and document checks
- Automatically capture proof needed for Companies House and ACSP workflows
- Create a simple verification experience for individuals who may not understand the new rules
- Avoid rejected filings by ensuring every PSC and director is fully verified
- Integrate IDV into existing systems, including Salesforce
For firms onboarding corporate clients, this makes it easy to verify all relevant parties — not just the named director, but anyone with significant control.
Prepare directors and PSCs for the 2025 deadline
The Companies House reforms are some of the most substantial corporate-transparency changes in decades. Directors and PSCs who prepare early will avoid last-minute delays, rejected filings and legal exposure.
ID-Pal gives organisations a fast, secure and compliant way to verify all directors and PSCs — helping them stay fully aligned with ECCTA requirements.
