UK Introduces Mandatory Identity Checks for Company Directors Under New Anti-Crime Law

Anyone becoming a company director or a person with significant control in a UK registered business must now verify their identity with Companies House, as the government moves to strengthen safeguards against economic crime. The requirement came into effect on eighteen November and represents one of the most significant changes the agency has implemented in its long history.

Companies House, which operates under the Department for Business and Trade, is rolling out the new rule under the Economic Crime and Corporate Transparency Act twenty twenty three. The agency has described the legislation as the most substantial overhaul of its services in one hundred eighty years. The aim is to provide greater clarity about who is establishing, managing and owning companies in the UK.

Identity verification will be phased in over twelve months. However, the agency emphasises that failing to complete the process within the required timeframe is an offence. Officials say the measure will make it much more difficult for individuals to set up companies using stolen or false identities and will help uncover disqualified directors or networks of companies linked to a single person.

More than one point five million individuals have already verified their identities since the option was launched voluntarily in April. There are more than six million existing officers currently on the register who will need to comply as the requirement expands.

There are two available methods for verification. Individuals can complete the process directly with Companies House through GOV.UK One Login, which the agency says can typically be done within minutes using existing identification documents such as passports or driving licences. In some cases, individuals may be asked to answer security questions. Once verified, people will receive a personal code that must be used to confirm their identity for each company role they hold.

The second option is to verify through an authorised corporate service provider. These providers are individuals or organisations that already operate under anti money laundering supervision. They can complete the process on behalf of clients when forming new companies or managing existing registrations.

Directors and persons with significant control must provide a statement confirming their verification status. For existing directors, this must be submitted alongside the company’s annual confirmation statement, which ensures public information remains up to date.

Companies House has outlined several consequences for non compliance. These include financial penalties, referral to the Insolvency Service and, in more serious cases, prosecution. The agency says it will work closely with law enforcement partners to deter and disrupt criminal behaviour and will use its strongest powers where there is evidence of fraudulent or aggravated offences.