As of 8 April 2025, Companies House is urging business owners to verify their identity on the platform. While currently a voluntary step, the government plans for identity verification to become mandatory by autumn 2025.
The change is set to affect more than six million people, such as those who own limited companies. Once it becomes mandatory, business owners will have 12 months to comply. Companies House are hoping this phased approach will reduce the burden on companies rushing to meet the deadline.
The change comes as part of an update to the Economic Crime and Corporate Transparency Act 2023, which aims to prevent crime and support growth in the economy. Verifying the identity of those registered with Companies House will give more visibility to who’s setting up and controlling companies in the UK.
Read more: Certificate of Incorporation: registering with Companies House
What do small business owners need to do next?
If you want to voluntarily verify your identity ahead of it becoming mandatory, you can do so as long as you’re a company director or person with significant control. You can verify your identity either:
- directly through Companies House with your government One Login system
- through an Authorised Corporate Service Provider (ASCP), such as your company accountant
Companies House CEO Louise Smyth CBE says: “Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.
“To reduce the burden on business, the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process.”
‘A win for businesses and a win for economic growth’
AI and Digital Government Minister Feryal Clark MP supports the change, saying: “Ensuring trust and transparency in the digital age is vital and today marks an important step forward.
“Identity verification at Companies House through our GOV.UK One Login service will make it easier to do business with confidence – protecting entrepreneurs, consumers, and the UK economy from fraud and financial crime.
“By embracing digital identity checks, we’re reducing red tape while strengthening our defences against abuse of the system. This is a win for businesses, a win for transparency, and a win for economic growth – a key driver for our Plan for Change.”
More guides for company directors
- 10 legal changes impacting small businesses in 2025
- 5 new tax laws for businesses in 2025
- How to register a business name – and how to protect it
- Is business insurance a legal requirement?
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