Companies House 2025 IDV Changes: Everything you Need to Know

The UK is poised to implement a significant transformation in corporate governance as Companies House introduces new identity verification (IDV) requirements starting in 2025. These measures, part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), aim to enhance transparency and trust in the UK’s corporate landscape.

By the end of 2026, all company directors, Persons with Significant Control (PSCs), and other key individuals associated with businesses will need to have their identities verified. This monumental shift will impact over 7 million people and fundamentally change how companies operate in the UK.

For a more comprehensive overview of these reforms, you can explore this detailed article on the Companies House changes.

The Driving Force Behind the Changes

In recent years, concerns have grown about the misuse of UK companies for illegal activities such as fraud, money laundering, and tax evasion. The simplicity of forming a company has sometimes been exploited, undermining trust in legitimate businesses.

These reforms aim to address this by ensuring that anyone setting up, running, or controlling a company can prove they are who they claim to be. This effort aligns with broader goals to reduce economic crime and strengthen corporate accountability.

These changes are not just about compliance—they’re about creating a safer and more transparent business environment. For additional insights into the role of identity verification in this process, our guide to identity verification types offers a clear breakdown.

Who Will Be Affected?

The new verification requirements will apply to:

• Company Directors
• Persons with Significant Control (PSCs)
• Company Secretaries (if applicable)
• Authorised Filers (those submitting filings on behalf of a business)

This broad scope ensures that anyone involved in the operation, ownership, or filing for a company will be held accountable under the new regime. Businesses should also explore the specific costs of shareholder identity verification, which can help them better prepare for implementation.

The Companies House Verification Process

The ID verification process will be straightforward but robust. Individuals will need to submit:

• A photo of a government-issued ID, such as a passport or driver’s license.
• A selfie or video to confirm their identity matches the submitted document.

Verification can be done directly through Companies House using their new digital platform or via an Authorised Corporate Service Provider (ACSP). ACSPs, such as regulated accountants or solicitors, are already subject to anti-money laundering (AML) checks and can assist in streamlining the process.

For a closer look at how these ID checks work and their importance, see how AML identity verification is implemented.

New Companies: Incorporation Requirements

From autumn 2025, anyone looking to incorporate a new company in the UK will need to complete their identity verification as part of the process. This marks a major departure from the current system, where incorporation requires no prior verification of identity.

Alongside these changes, Companies House will gain new powers to scrutinise and challenge information submitted to the register. Fraudulent or inaccurate submissions can now be rejected or removed, further strengthening the integrity of the corporate register.

For an in-depth understanding of the step-by-step process and what this means for businesses, this government resource on the changes is highly informative.

Existing Companies: Transition and Compliance

For companies already on the register, the changes will be rolled out over a 12-month transition period. Directors and PSCs will need to verify their identities alongside their confirmation statements. By the end of 2026, Companies House aims to have completed the verification process for all entities.

Businesses should note that non-compliance with these requirements could lead to significant consequences, including fines, criminal charges, and potential removal from the register. For companies and individuals, the risks of falling behind are clear: the new system is designed to penalise deliberate non-compliance while providing enough time for businesses to meet their obligations.

A comparative look at identity verification providers can also help companies find the right tools to ease the burden of compliance.

Preparing for the Changes

While the rollout is planned for 2025, businesses can begin preparing now to ensure they are ready when the changes take effect. Here are some steps to consider:

1. Review Your Business Structure: Identify which directors, PSCs, and other stakeholders will need to be verified.
2. Consider Verification Tools: Explore digital solutions that offer ID and document verification, facial comparison, and AML screening to streamline compliance.
3. Educate Stakeholders: Make sure directors and PSCs are aware of the changes and their responsibilities under the new rules.
4. Audit Your Records: Ensure the information your company holds on directors and PSCs is accurate and up to date.

Implementing robust identity verification processes now can provide significant advantages. Many businesses are already leveraging advanced tools to perform real-time ID checks, sanction screenings, and fraud prevention, which not only simplifies compliance but also enhances operational efficiency. Reports such as FullCircl's State of Identity Verification offer insights into the challenges and opportunities of ID verification today.

Why These Changes Matter

The Companies House reforms represent a major milestone in improving corporate transparency and deterring financial crime. They are designed to make the UK a safer and more credible place to do business, protecting both companies and their stakeholders from fraudulent activity.

For businesses, this is more than just a compliance exercise, it’s an opportunity to demonstrate trustworthiness and align with the evolving expectations of partners, customers, and regulators. By acting now, companies can position themselves ahead of the curve and ensure a smooth transition into the new regime.

Benefits of FullCircl’s Solutions

Preparing for the ID verification changes doesn’t have to be daunting. FullCircl offers advanced solutions to help businesses manage ID verification seamlessly. Their tools include:

• Real-time ID Verification
• PEPs and Sanctions Screening
• Facial Comparison
• Automated Document Verification
• Address Verification and Lookups

These technologies ensure compliance with the upcoming requirements while also providing ongoing protection against fraud and financial crime. Businesses looking to gain an edge can explore tailored solutions or schedule a personalised demo to see how these tools can simplify compliance and improve operations.