Identity Verification Requirements Under the Economic Crime and Corporate Transparency Act 2023
The Economic Crime and Corporate Transparency Act 2023 (the Act) introduced new mandatory identity verification requirements for directors and persons with significant control (PSCs) at Companies House. As these new regulations have now come into force, it’s essential for business owners and directors to understand the requirements, deadlines, and penalties for non-compliance.
What the Changes Mean for You
Since 18th November 2025, new directors and PSCs must now verify their identity either at the time of company incorporation or upon appointment to an existing company. Existing directors and PSCs will have a 12-month grace period, but they must verify their identity when filing the company’s next confirmation statement after this date.
When to verify:
New Directors – Within 14 days of appointment
Existing Directors – Before the company’s next confirmation statement date after 18 November 2025
PSC (who is a director) – Within 14 days of the company’s next confirmation statement date after 18 November 2025
PSC (non-director) – Within 14 days of the first day of their birth month after 18 November 2025 (e.g. if the PSC’s date of birth is 26 June, the 14 day period will begin on 1 June)
Verification Process
There are two main ways to complete the identification verification process:-
- Direct verification via Companies House – this is through the OneLogin system, which involves creating an account and submitting personal details online, or
- Verification through an Authorised Corporate Service Provider (ACSP), such as a solicitor.
Once identity is verified, a unique personal code will be generated. This code must be provided each time the person is appointed as a director or notified as a PSC. It’s essential to keep this code secure, although it can be shared with an ACSP if they are filing on your behalf or saved in your Companies House account.
Compliance
The identity verification process is intended to be a ‘one time’ task, unless Companies House issue a reverification notice or any personal information changes.
Failure to verify your identity could result in serious consequences, including:
- Fines of up to £5,000
- Criminal prosecution
- Inability to file documents, such as accounts or confirmation statements
- Possible company strike-off from the Companies House register
How to prepare
We recommend reviewing your company’s current director and PSC appointments to ensure compliance with these requirements. Preparing in advance will help avoid delays or penalties.
If you need us to assist with compliance or wish to use our ACSP service, please do not hesitate to contact us at CoCoDepartment@chadlaw.co.uk or call us on 0113 225 8811.
