What the New Companies House Identity Verification Regime Means for Your Practice

Under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), Companies House is in increasing its regulatory and enforcement powers as part of a process to dramatically improve the quality of information on the register. One of the most significant changes is the introduction of compulsory identity verification for company directors, People with Significant Control (PSCs), and anyone filing on their behalf.

This article looks at the what the new Companies House ID regime means for your practice. If you’re interested in finding out more about what 20:20 Innovation can do to support your training in this particular area, take a look at our Companies House ACSP training page.

There are some key changes to the way that your director clients will need to have their ID documents verified. These include:

• Voluntary identity verification became available from 8 April 2025, allowing individuals to verify via GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP)
• Compulsory verification from 18 November 2025 for new incorporations and appointments, and confirmation statements filed after this date, triggering a 12‑month transition window for existing directors to comply by autumn 2026
• By spring 2026, only verified individuals—or registered ACSPs—will be permitted to file documents at Companies House
• Every PSC has a 14-day period during which they must submit a statement confirming they have verified their identity, along with their Companies House personal code.
  • If they are registered as a PSC after 18 November 2025, their 14-day period starts from the date they register with Companies House.
  • If they are already a PSC on 18 November 2025, their 14-day period starts from the company’s confirmation statement date - if they are also a director of the company.
  • If they are not a director of the company, their 14-day period starts from the first day of their month of birth, as it is shown on the Companies House register. For example, if the date of birth is shown on the register as March 1990, the 14-day period will start on 1 March 2026.

Identity verification requirements for limited partnerships, corporate directors of companies, corporate members of limited liability partnerships (LLPs), and officers of corporate PSCs will commence later.

If you file on behalf of clients or verify directors / PSCs, you must register as an ACSP. Once registered as an ACSP you can also verify the ID of directors and / PSCs. To register, you must:

• • Hold AML supervision (e.g. ICAEW, HMRC),
  • Verify the ID of the principal applying on behalf of the firm on the gov website,
  • Retain verification records for seven years,
  • Be audit-ready for potential spot checks

There are three ways an individual can verify their ID:

1. Directors / PSCs can ID themselves directly on the gov website (or use the website to book an appointment to do it in person at a Post office).
2. ACSPs can verify the ID of Directors / PSCs via electronic software with identification document validation technology (IDVT). Note this is different from a system that takes a client’s ID information and cross checks it to various databases – this must be a system that scans the document itself and confirms it is authentic via the image or the embedded chip.
3. ACSPs can verify the ID of Directors / PSCs via paper documents, after the ACSP has undertaken appropriate training. The documents must either be two from list A in the rules (which includes documents such as passports or photocard driving licences), or one from list A and one from list B (which includes documents such as a birth certificate or utility bill). The guidance issued by Companies House makes clear that at least one of the documents must be a photographic one.

Failing to comply isn’t just inconvenient, it can be costly. Directors cannot be legally appointed or submit filings if unverified, and firms risk reputational damage and the loss of ACSP registration if they state that they have verified an individual when they have not done so properly.

At the same time, this change opens up new service lines and revenue opportunities:

1. Provide ID verification in‑house as part of your service offering—a premium option for existing clients.
2. Strengthen client onboarding workflows, integrating identity verification as a routine first step. N.B. the ID verification process is different than that required by the AML regulations, and the onboarding process needs to cope with both requirements.
3. Use specialist tools (e.g. biometric document validation tech) to streamline processes and build efficiency.

Your firm needs to be compliant, so consider taking the following steps:

• Register as an ACSP promptly, if not done already — avoids delays and confusion and allows someone in the firm to use the gov website to confirm their own ID and so understand the process you are asking clients to consider.
• Decide whether to verify client IDs using:
  • Electronic IDVT tools for biometric document validation,
  • Or manual document checking, which requires home‑office standard training and stronger procedural rigour than standard AML checks
• Confirm how to price any verification service and communicate the options and pricing to clients before confirmation statements need to be filed.

Train your staff in document fraud detection and internal processes to maintain the identity verification standard.

Despite the official timelines, early adopters can avoid the stampede as 18 November approaches and position their firms as trusted compliance partners. With many clients unaware of the changes and some verification companies charging up to £250, proactive firms can gain competitive advantage and provide clarity and comfort for their clients in advance of the deadlines.

Time to Take Control - Don’t Let Clients Get Left Behind

The shift to mandatory identity verification at Companies House isn’t optional. Get ahead of the curve, register as an ACSP, train your team, invest in validation tools, and embed ID verification into your onboarding workflows.

Book your place at our ACSP training webinar now to ensure your firm stays compliant, competitive, and primed for the regulatory future.