Overview of Identity Verification Regime 
An identity verification regime is one of the key changes being introduced by the Economic Crime and Corporate Transparency Act 2023. Up until the introduction of this Act, it will have been possible to register an appointment at Companies House without the knowledge or consent of the person being registered. Companies House had no powers to confirm consent and was legally obliged to register the appointment. Once recognised as a fraudulent appointment, it proved time consuming and costly to remove such appointments.
It is hoped that ID verification will make it much harder to register fictitious directors or beneficial owners, stopping most fraudulent appointments from reaching Companies House. It is also hoped that the ID verification regime will provide greater assurance to third parties searching the register that the information on the register is genuine.
ID verification will ensure that there is always a natural person associated with an incorporation or a filing – making individuals easier to trace.
All entities registered at Companies House will have to have at least one fully verified natural person directly associated with them on the public register.
There will be various routes to undertake the ID verification process.
Companies are well advised to start planning for these changes which will be in force during 2025 and 2026 and make sure that they have all necessary information and systems in place to comply with the new regime.
Since 8th April 2025 Companies House has allowed individuals to voluntarily verify their identity. It is expected that by Autumn 2025, ID verification will be a compulsory part of incorporation and new appointments for new directors and PSCs. At the same time, it is also expected that the 12 month transition period for existing directors and PSCs to verify their identity will begin - the identity verification will happen as part of the annual confirmation statement filing. By Spring 2026, Companies House should be able to make identity verification compulsory for anyone filing a document with them and require third party agents filing on behalf of companies to be registered as an ACSP. The transition period for all individuals on the register requiring identity verification is expected to be completed by the end of 2026.
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