Companies House Changes

Are You Ready for Companies House ID Verification Changes?

A Practical Guide to Help ACSPs Prepare for changes.

Download Your ACSP Guide (PDF)

From autumn 2025, a change is coming to the way UK companies are managed. As part of the Economic Crime and Corporate Transparency Act, Companies House will introduce mandatory identity verification for all company directors, People with Significant Control (PSCs), and those filing information on a company’s behalf.

If you’re an Authorised Corporate Service Provider (ACSP) such as an accountant, solicitor or company formation agent, this affects you directly. And with potential criminal sanctions or fines for non-compliance, being prepared isn’t optional.

In this blog, we break down what ACSPs need to know, what’s changing, and how to stay compliant. Plus, we’ll guide you to practical tools, including our free guide and bonus checklist to help you hit the ground running.

Chapter 1

Why is Companies House changing its ID Verification process?

The UK’s fast, low-cost company formation process has long been exploited by criminal groups to set up fake companies, appoint bogus directors, and launder money. Since 2011, companies can be incorporated in 24 hours for as little as £12, which criminal groups have exploited to run large-scale scams. To restore trust and tackle fraud, Companies House is introducing mandatory identity checks to ensure directors are who they say they are.

  1. 210,000

    records removed from Companies House.

  2. ~20%

    of all company data may be inaccurate or false.

  3. 250,000

    identity fraud cases recorded in 2024.

Before the Economic Crime and Corporate Transparency Act 2023, there was no legal requirement to verify the identities of directors, People with Significant Control (PSCs), or third-party agents acting on behalf of companies. Companies House relied heavily on trust and self-declaration, allowing businesses to incorporate quickly and cheaply, but with minimal oversight. In recent years, this framework has been exploited, particularly through the use of anonymous or fraudulent shell companies and partnerships.

Major banks have called for urgent reform, arguing that the current system lacks the necessary safeguards. UK-registered companies have been linked to a string of financial scandals, most notably the Danske Bank case, where billions were funnelled out of Russia into Europe. It is now considered one of the largest money-laundering operations in history.

Divider

The new rules will:

  1. Make identity verification mandatory for all new and existing directors, PSCs, and company filers, including ACSPs.

  2. Applies to companies registered in England, Scotland, Wales, and Northern Ireland, including LLPs, and overseas entities.

  3. Mandate identity verification prior to incorporation or the appointment of directors, PSCs, or third-party agents.

  4. Restrict filings to verified individuals or ACSPs.

  5. Allow verification either directly through Companies House or via an ACSP.

  6. Introduce penalties, including fines and potential criminal sanctions for non-compliance or false information.

Chapter 1

Who must verify their identity under the new rules?

The identity verification rules will apply to anyone involved in setting up, managing, or filing for a company. This includes:

  • Company directors
  • PSCs (People with Significant Control)
  • LLP members
  • General partners of limited partnerships
  • Anyone filing documents at Companies House
  • ACSPs themselves, when registering

While identity checks are currently voluntary, they will become mandatory from autumn 2025.

Chapter 1

Timeline for identity verification reforms at Companies House

Companies House identity verification requirements under the Economic Crime and Corporate Transparency Act will be introduced in phases:

  • 18 March 2025

    Third-party agents can begin registering as Authorised Corporate Service Providers (ACSPs) with Companies House.

  • 08 April 2025

    Identity verification becomes available on a voluntary basis for directors, PSCs, and authorised filers.

  • Autumn 2025

    Identity verification becomes mandatory for all new company directors and People with Significant Control (PSCs) at the point of incorporation or appointment.

  • Autumn 2026

    Final deadline for all existing directors and PSCs to complete identity verification, following a 12-month transition window.

Chapter 1

The role of ACSPs in identity verification

Starting in autumn 2025, ACSPs will be legally required to verify the identities of all directors and Persons with Significant Control (PSCs), either directly or on behalf of their clients.

To support you, we’ve created a practical checklist that guides ACSPs through the updated verification process. Here’s a quick overview:

  1. Capture Personal Details

    Collect the individual’s full name, date of birth, address, and similar identifying information.

  2. Collect Documents

    Acceptable documents include biometric passports, driving licences, or residence permits.

  3. Validate and Match

    Review the documents and confirm that the person’s photo and details match the information provided.

  4. Submit to Companies House

    File the verification and retain supporting records for seven years.

Chapter 1

Registering as an ACSP: What you need to know

To register as an ACSP, you must hold a senior position in your business (such as a director, partner, or sole trader). To complete the registration process, you must first verify your own identity using Companies House’s online service, and pay a £55 registration fee.

Once registered, you’ll receive a digital account and unique ID number, allowing you to file company information and carry out identity checks on behalf of clients. This also enables Companies House to confirm that submissions have come from an authorised source.

To qualify as an ACSP, your business must be supervised by one of the UK’s 25 anti-money laundering (AML) bodies. Sole traders can also apply, provided they meet the criteria.

Chapter 1

Make identity verification simpler and faster with Creditsafe

Creditsafe’s ID Verification Plus (IDV+) is a digital solution designed for ACSPs to verify director identities quickly, easily and confidently.

Automated workflows standardise the verification process, enabling ACSPs to run real-time identity checks from anywhere without the usual administrative hassle.

With IDV+, you can:

  • Instantly verify passports and driving licences, cutting delays and boosting accuracy
  • Harness biometric liveness checks and facial matching to ensure identities are genuine
  • Collate all required documents using intuitive, dynamic forms
  • Generate fully compliant reports tailored for Companies House
  • Automate workflows to minimise errors and free your team from repetitive manual tasks
ID Verification Plus Process

Companies House ID checks made simple

Discover how Creditsafe’s IDV+ tool helps you stay compliant with the latest identity verification rules.

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