UK Mandates Identity Verification For Company Directors And PSCs From 18th November 2025

UK Mandates Identity Verification for Company Directors and PSCs from 18th November 2025

Effective from November 18, 2025, every existing and new company directors and Persons with Significant Control (PSCs) of UK companies must comply with the new UK director identity verification mandate. This essentially means that every company directors and PSCs will be required to prove they are who they claim to be. The verification process will be rolled out over a 12-month transition period to ease compliance for companies and business owners. As a facilitation measure, Directors and PSCs will also be able to view their identity verification deadlines for all their roles directly on the Companies House register.

Implemented under the Economic Crime and Corporate Transparency Act 2023, which amends the Companies Act 2006, this reform will take effect from 18 November 2025. The requirement is designed to strengthen trust in UK businesses by ensuring clear accountability over who owns and controls companies. Failure to complete this essential Companies House ID verification will constitute an offence and can lead to severe penalties. We break down the precise requirements and deadlines below.

Background

The requirement to verify identity was initially a voluntary measure, and later made mandatory through a Press Release issued on 5 August 2025 and subsequently confirmed by a Companies House announcement on 3 November 2025.

The Mandate: Why is Identity Verification Required?

Effective 18th November 2025, Companies House UK will require company directors and Persons with Significant Control (PSCs) of every company incorporated in the United Kingdom or overseas companies with establishments in the UK to verify their identities. This essentially means that every company director/s and PSCs will be required to prove they are who they claim to be. The verification process will be rolled out over a 12-month transition period to ease compliance for companies and business owners. As a facilitation measure, Directors and PSCs will also be able to view their identity verification deadlines for all their roles directly on the Companies House register.

Implemented under the Economic Crime and Corporate Transparency Act 2023, which amends the Companies Act 2006, this reform will take effect from 18 November 2025. The requirement is designed to strengthen trust in UK businesses by ensuring clear accountability over who owns and controls companies. Acting as a director without verified identity after commencement will constitute an offence.

The reform aims to:

• Enhance corporate transparency by ensuring that those in control of UK companies are verified individuals.
• To deter those wishing to use companies for illegal purposes.
• Prevent companies formed in a fraudulent manner and for unlawful financial activities.
• Instill trust in the UK business ecosystem by providing regulators and the public accurate and verified company ownership data.
• Strengthen Companies House data reliability and prevent its misuse.

Verification Timeline, Who Needs to Comply and When?

Effective from 18th November 2025, the following persons are required to comply with the requirement under the given timeline:

• New Directors: Must verify their identity to incorporate a company or be appointed to an existing company.
• Existing Directors: Must confirm their identity at the time of filing the next annual confirmation statement, within a 12-month transition period.
• New PSCs: Must verify their identity within 14 days of registration as a PSC.
• Existing PSCs: Must verify their identity either:
  • Within 14 days from their company's confirmation statement date (in case the PSC is also a director), or
  • Within the first 14 days of their birth month (in case the PSC is not a director).

How to Complete Your UK Director Identity Verification

The identity verification can be completed by any of the following methods:

• UK One Login: It is a secure government portal that allows direct verification of individual credentials. Individuals can apply through GOV.UK One Login free of cost.
• Authorised Corporate Service Provider (ACSP): Businesses can seek help from Companies House authorised agents to get the verification done on behalf of their directors and PSCs.

Once verified, each director or PSC will receive a unique Companies House Personal Code, which must be provided to Companies House for every company role they hold.

Implications and Penalty for Unverified Director

The obligation requires companies to take immediate action to ensure that the persons holding authority of the company have been verified. Companies will need to:

• Identify individuals whose identities are yet to be verified.
• Notify each director and PSC well in advance about their responsibilities with emphasis on penalties on non-compliance and ensure that they comply with the same.
• Nominate persons to oversee verification across all roles and maintain proper records.
• Update internal compliance policies to check on identity verification before each filing.
• Ensure that all filings and new incorporations meet verification requirements as directed by Companies House.

Failure to comply could delay company filings and potentially result in penalties under the Companies Act framework. There will be a range of consequences, including a financial penalty up to 5000 pounds for Scotland and Northern Ireland and for England and Wales, a penalty as will be decided by the courts. You may not be able to make any filings for your company or start a new company. Understanding the penalty for unverified director is critical for compliance.

Conclusion: Strengthening the UK Corporate Landscape

This step marks a turning point in how corporate ownership and control is/will be managed in the UK. By verifying who is truly behind every company, the government is closing long-standing gaps that allowed misuse of corporate structures. While it demands proactive compliance on the part of directors and PSCs, the measure is expected to strengthen business credibility, protect investors and build a more transparent and trustworthy corporate landscape for the future.

The proactive compliance demanded by this measure is efficiently managed through modern compliance management software like Komrisk, which simplifies regulatory task tracking and ensures adherence to the new UK framework.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.