New Legal Requirements for Company Directors: Identity Verification Under the ECCT Act 2023 Explained

UK company law is changing in a big way. Starting 18 November 2025, all company directors and people with significant control must verify their identity with Companies House under new legal requirements.

This mandatory identity verification process will affect millions of directors and PSCs across the UK, and those who fail to comply will face serious penalties. The changes come from the Economic Crime and Corporate Transparency Act 2023, which aims to reduce fraud and make company ownership more transparent. Whilst identity verification has been voluntary since April 2025, it becomes a legal requirement from November.

Directors need to understand exactly what they must do to stay compliant and avoid potential consequences. As an Authorised Corporate Service Provider (ACSP), we can guide companies through this new process and ensure they meet all the requirements on time.

Key Takeaways

• All UK company directors and PSCs must complete mandatory identity verification with Companies House from 18 November 2025
• Non-compliance with the new verification requirements will result in penalties and potential legal consequences for companies
• Authorised Corporate Service Providers can assist directors and companies with completing the verification process correctly

Overview of the ECCT Act 2023 Identity Verification Requirements

The Economic Crime and Corporate Transparency Act 2023 introduces mandatory identity verification for directors and people with significant control. Companies House confirms that from Tuesday 18 November 2025, legal requirements for directors and people with significant control (PSCs) of companies to verify their identities will begin.

Key Changes for Directors and PSCs

The Economic Crime and Corporate Transparency Act 2023 brings in new identity verification rules for a wide range of individuals linked to registered entities. This includes company directors, people with significant control (PSCs), LLP members, and certain officers of relevant legal entities.

Directors must now complete identity verification before they can be appointed to any company role. PSCs face the same requirement when they register their control over a company.

The verification applies to both new appointments and existing roles. New directors and PSCs must verify their identity immediately from 18 November 2025.

Existing directors and PSCs have longer to comply. They must complete verification by their company’s confirmation statement date between November 2025 and November 2026.

Penalties apply for non-compliance, making verification essential for maintaining director positions legally.

Purpose of Identity Verification

The identity verification regime aims to enhance corporate transparency and prevent economic crime in the UK. Companies House designed these measures to reduce fraud risks within the company registration system.

The new requirements help ensure that people listed as directors or PSCs are who they claim to be. This prevents criminals from using false identities to control companies.

Enhanced transparency allows authorities to track beneficial ownership more effectively. The system creates a reliable record of who actually controls UK companies.

The verification process helps protect legitimate businesses from identity theft. It also strengthens the overall integrity of the UK’s corporate register.

These changes align with international efforts to combat money laundering and corporate fraud through better company transparency.

Timeline for Compliance

From 18 November 2025, directors and PSCs should check the Companies House register to see the identity verification compliance dates for all their roles.

New appointments: All new director appointments and PSC registrations from 18 November 2025 require immediate identity verification before completion.

Existing roles: Current directors and PSCs must verify by their company’s confirmation statement date. This creates a rolling deadline between November 2025 and November 2026.

Each individual receives specific compliance dates based on their company’s confirmation statement schedule. Directors with multiple roles may have different deadlines for each position.

Companies cannot file confirmation statements if their directors or PSCs remain unverified past the deadline. This effectively prevents non-compliant individuals from maintaining their roles.

The quickest and cheapest method for an individual to verify their identity is through the GOV.UK One Login portal.

Steps Directors Must Take to Comply

Directors must verify their identity through Companies House before 18 November 2025 becomes mandatory. The process requires specific documents and can be completed online through GOV.UK One Login.

Eligibility and Preparation

All company directors and PSCs must complete identity verification regardless of when they were appointed. Existing directors must verify their identity by the time of filing their next confirmation statement from 18 November 2025.

Directors holding multiple roles across different companies face stricter deadlines. They must complete verification by the earliest confirmation statement filing date amongst all their appointments.

Key preparation steps include:

• Gathering valid identity documents
• Checking current confirmation statement due dates
• Creating a GOV.UK One Login account
• Ensuring personal details match Companies House records exactly

Directors should begin the process early to avoid potential delays. The verification applies to both UK and overseas directors.

How to Complete Identity Verification

The quickest and cheapest method is through the GOV.UK One Login portal. Directors can access this free service using their existing government gateway credentials or by creating a new account.

The online process involves:

• Document upload – Photographing identity documents using a smartphone or scanner
• Facial recognition – Taking a selfie to match against the uploaded photo ID
• Data verification – Confirming personal details match Companies House records
• Submission – Receiving confirmation of successful verification

Alternative verification methods include postal applications and third-party verification services. However, these options typically cost more and take longer to process.

Directors who cannot use digital services may need assistance from authorised agents or alternative verification routes.

Supporting Documents and Information Required

Directors must provide one primary identity document from the accepted list.

Valid documents include:

• UK or overseas passport (current or expired within 12 months)
• UK photocard driving licence
• European national identity card
• Biometric residence permit

The document must clearly show the person’s full name, date of birth, and photograph. Photocopies or scanned images are not acceptable for postal applications.

Additional information required:

• Current residential address
• Date of birth matching Companies House records
• National Insurance number (if applicable)
• Previous names or aliases

Directors must ensure all details precisely match their existing Companies House information. Any discrepancies will delay the verification process and may require updating company records first.

Consequences of Non-Compliance and Impact on Companies

Companies that fail to meet the new identity verification requirements will face serious penalties and operational challenges. The changes will affect how businesses file documents and operate within the UK corporate framework.

Potential Penalties

Directors and PSCs who do not complete identity verification by the deadline will face immediate consequences. Companies House has implemented new powers with enhanced non-compliance penalties to ensure businesses meet their legal obligations.

The Registrar can now impose sanctions more quickly than before. Financial penalties will apply to directors who fail to verify their identities within the required timeframe.

Key penalty areas include:

• Fixed penalty notices for late compliance
• Ongoing daily penalties until verification is complete
• Restrictions on company activities
• Potential disqualification proceedings

Small businesses may face more devastating impacts compared to larger corporations. They often lack the financial resources to absorb penalty costs or recover from compliance failures.

The penalties escalate the longer directors remain non-compliant. Swift action is essential to avoid mounting financial consequences.

Implications for Company Filings

Unverified directors will be unable to file essential documents with Companies House. This creates significant operational problems for businesses trying to meet their statutory obligations.

All companies must submit annual accounts and confirmation statements, even if they are dormant. Directors cannot fulfil these responsibilities without completing identity verification first.

Filing restrictions affect:

• Annual accounts submissions
• Confirmation statements
• Changes to company information
• New appointments of directors or PSCs

Companies may find themselves in a compliance deadlock. They face penalties for failing to file required documents, but cannot file without verified identities.

The situation becomes more complex when multiple directors need verification. One unverified director can prevent the entire company from meeting its filing obligations.

Improving Corporate Transparency

The identity verification system aims to create a cleaner, more transparent corporate environment. Companies that comply early will benefit from improved credibility and reduced regulatory scrutiny.

Verified companies will be clearly identifiable in the Companies House register. This creates a competitive advantage for compliant businesses when dealing with customers, suppliers, and investors.

Transparency benefits include:

• Enhanced trust from stakeholders
• Reduced risk of association with fraudulent entities
• Improved access to business opportunities
• Better regulatory standing

The system will make it harder for bad actors to hide behind corporate structures. Legitimate businesses will operate in a cleaner marketplace with fewer fraudulent competitors.

Corporate transparency improvements will benefit the entire UK business ecosystem. Companies that embrace these changes early will be better positioned for future success.

How We Will Support as an ACSP

As an Authorised Corporate Service Provider (ACSP), the firm will provide comprehensive support for clients navigating the new identity verification requirements. This designation allows the practice to handle identity verification processes on behalf of directors and PSCs.

Direct Identity Verification Services

The firm can verify client identities directly through secure systems. This eliminates the need for directors to complete verification themselves through GOV.UK One Login.

Clients receive personalised guidance throughout the entire verification process. The team ensures all documentation meets Companies House standards.

Filing and Compliance Support

From spring 2026, only ACSPs will be able to file statutory information on behalf of clients. The firm will handle all necessary filings once directors complete their verification.

The practice manages confirmation statements and other statutory filings seamlessly. This ensures clients remain compliant without disruption to their business operations.

Ongoing Compliance Management

The firm monitors verification deadlines for existing directors and PSCs. Existing directors have until autumn 2026 to complete their verification during the transition period.

Regular reminders and updates keep clients informed of their obligations. The team tracks multiple company requirements for directors with portfolio responsibilities.

Expert Guidance

The firm provides clear explanations of the Economic Crime and Corporate Transparency Act requirements. Clients receive practical advice tailored to their specific circumstances and business structures.

Frequently Asked Questions

Directors and PSCs must complete specific verification steps before the November deadline. The new requirements introduce penalties for non-compliance whilst creating opportunities for authorised service providers to assist with the process.