Over the last few months, I’ve been getting lots of questions from people worried about messages from Companies House. They’ve been getting emails saying that they need to register their identity with Companies House, and they’re worried it’s a scam, or just spam. Which is totally understandable really, since there are plenty of those out there! But on this occasion, the email is completely valid. There’s been a change of process that’s coming into effect soon, but there’s not really been any promotion or news shared about it. So rather than business owners being prepared and ready for it, we’ve all been wondering what on earth is going on. So today, let’s learn together.
What Is The New Process?
In their quest to make things more secure and efficient, Companies House are introducing a new identity verification process for UK companies. The idea behind this is to deter people from setting up companies for illegal purposes like fraud, since they can be tied directly to their identity in a very traceable way. Rather than just providing basic information, the new method will be a lot more involved, and can all be done online via the .gov website. In fact, the instructions are in that email you got (presuming you didn’t delete it thinking it’s spam). This new process has been voluntary since the 8th of April, but it will become mandatory from the 18th November 2025.
Who Needs to Verify Their Identity?
The new rules state that all directors and persons of significant control (or PSC) will need to verify their identity with Companies House.
If you’re registering a new company after this date, you’ll need to verify your identity before the company will be incorporated, or before you can be appointed to an existing company. If you’re registering as a new person of significant control, then you will need to confirm your identity has been verified within 14 days of being added to the Companies House register.
If you’re already a registered director, this deadline isn’t as important. Instead, you have until your next annual confirmation statement is filed to verify your identity. Just to make things a little more confusing, the process for existing persons of significant control is a little different. If you’re a PSC and a director of the same company, you have to verify your identity once, but submit it twice – once as a director and once as a PSC – using your personal code. I’ll get into what that is in the next section. If you’re a PSC but not a director of the same company, then you have to verify your identity within the first 14 days of your birth month.
If you’re a director of an LLP, you’ll also need to verify your identity, in the same way as if you were the director of a limited company.
A few other people will need to verify their identity too, including:
- An Authorised Corporate Service provider (ASCP), who is someone who can act on behalf of companies with Companies House.
- Someone who files for a company, for example a company secretary.
In the future, they will be adding more people to this list, but for now, that’s it. So if you’re not on that list, you’re off the hook!
How Do You Do It?
That’s the big question! Essentially, you verify your identity with Companies House through the .gov website, or you can use an authorised corporate service provider. This is someone like an accountant, solicitor or company formation agent, who is registered with Companies House to act on behalf of other companies. You’ll need to provide them with documentation if you choose this option.
To do it yourself, login to the GOV.UK One Login portal. You’ll be asked a few questions and told which is the best way to verify your identity. Remember, you have to provide answers about yourself, not your company! Depending on your answers, you’ll be told to verify your identity:
- With an app
- By answering security questions online
- By entering your details from your photo ID on GOV.UK One Login first, then going to a participating Post Office to complete verification.
Once you’ve successfully verified your identity, you’ll be given a personal code. Like the name says, this code is personal to you, not to the company, and it’s important, so make sure you keep it somewhere safe! From the 18th November, you’ll need this code for a few things, including:
- When you file your annual confirmation statement
- If you’re appointed as a director
- If you become a person with significant control
That might all sound like a bit much, but it’s fairly straightforward to do. And once it’s done, that’s it. Your personal code will always stay the same, and you won’t need it all that often.
What Happens If I Don’t?
If you don’t verify your identity, there are a few things that will happen. First, you won’t be able to make any filings, start a new company or register as a Companies House Authorised Agent. If you still don’t verify, then you’ll actually be committing a crime, and you might be issued a penalty or fine, with accruing interest until you do it. If you still continue to act as a director or PSC without verifying after it becomes a legal requirement, you’ll also be committing an offence and could be disqualified. The company would also be committing an offence, and would have to face the consequences.
So if you do get an email from Companies House asking you to verify your identity, don’t ignore it! And if you’re not sure what to do, get in touch with me and I’ll happily talk you through it.