If you’re a company director, one of the biggest changes to Companies House in recent years is now underway.

As part of the Economic Crime and Corporate Transparency Act, Companies House is introducing mandatory identity verification for directors, People with Significant Control (PSCs) and others involved in running UK companies. The aim is to improve the accuracy of the Companies House register and reduce fraud.

What is changing?

Historically, it has been relatively easy to register a company or become a director without verifying your identity.

Under the new rules, directors and PSCs will need to verify who they are either:

• Directly through Companies House.
• Through an Authorised Corporate Service Provider (ACSP), such as an accountant or company formation agent.

Who needs to verify their identity?

The new requirements apply to:

• Company directors.
• People with Significant Control (PSCs).
• Members of Limited Liability Partnerships (LLPs).
• Individuals filing information on behalf of companies in certain circumstances.

Whether you’re starting a new company or already running one, these changes are likely to affect you.

When do the rules apply?

Companies House introduced voluntary identity verification in 2025.

From 18 November 2025, identity verification became part of the process for company directors and PSCs, with wider compliance and enforcement measures being phased in during 2026.

Why is Companies House making these changes?

The reforms are designed to:

• Reduce company fraud.
• Improve trust in the Companies House register.
• Prevent false identities being used.
• Increase transparency across UK businesses.
• Give Companies House stronger powers to challenge inaccurate information.

For genuine business owners, the process is another compliance requirement—but one that should help improve confidence in UK companies overall.

What happens if you don’t comply?

As the new regime is fully implemented, directors who fail to comply may face restrictions on their ability to act and companies could experience delays or issues with statutory filings. Companies House has also been given stronger enforcement powers under the new legislation.

How should directors prepare?

If you’re a company director, now is a good time to:

• Check your Companies House information is accurate.
• Ensure director and PSC details are up to date.
• Understand how you’ll complete identity verification.
• Speak to your accountant if you’re unsure what applies to your business.

Preparing early can help avoid last-minute issues when filing company documents.

Final thoughts

The Companies House reforms represent one of the biggest changes to UK company administration in years.

Although identity verification introduces an extra step, it is intended to strengthen the integrity of the UK corporate register and reduce fraudulent activity.

If you’re unsure how the new rules affect your company, Merranti Accounting can guide you through the changes, help keep your company records compliant and ensure you’re ready for the new identity verification requirements.

Written by Steve Watts