Best Guide to the New Companies House ID Checks and What It Means for Your Business

Shoppers are turning to clear, verified company records as Companies House launches mandatory identity checks for directors and people with significant control from 18 November. Business owners across the UK need to know how to verify, what documents to use, and what happens if you miss the deadline , because this change is meant to stamp out fraud and protect honest firms.

• Mandatory verification: Anyone becoming a company director or PSC must now verify their identity with Companies House, phased in over 12 months.
• Two routes to verify: Free GOV.UK One Login checks (passport, driving licence or security questions) or via an Authorised Corporate Service Provider (ACSP).
• One-off code: After verification you’ll get a personal code; most people only need to verify once and use that code for each company role.
• Penalties for non-compliance: Missing verification can bring fines, referral to the Insolvency Service, or prosecution; Companies House will target aggravated or criminal cases.
• Practical hint: Existing directors must include their verification code in the company confirmation statement , it’s a small paperwork change with big compliance implications.

Why this new ID rule is a big deal for UK businesses right now

Companies House says the move will make it much harder for fraudsters to hide behind fake or stolen identities, and that’s the headline benefit most owners will understand straight away. The registry wants people to feel confident that when they deal with a supplier, client or investor, the company they’re dealing with is genuine , not a front for organised crime. There’s also a human, sensory angle here: fewer surprise letters, fewer opaque ownership structures and, for many, a general sense that business is getting less messy.

This policy follows years of pressure to clean up the register, after investigations exposed networks using bogus companies to exploit people and dodge tax. One probe found a single person behind dozens of shell firms, and cases like that have driven the urgency of verification. More than 1.5 million people have already verified voluntarily since April, so the new rules are really just formalising a process many have already adopted.

For your business, the important thing is practical , the phase-in gives a 12-month runway, but don’t wait until the last minute. If you’re setting up directors or appointing a PSC, verification has to happen around the same time as the relevant filings, and the confirmation statement now carries new paperwork.

How to verify and which method suits your company best

There are two main routes: a free GOV.UK One Login check or using an Authorised Corporate Service Provider. The GOV.UK route is straightforward , you’ll use existing ID like a passport or driving licence and in some cases answer security questions. It’s free, quick for many people, and suitable for most directors and PSCs who manage their own paperwork.

If your company uses an accountant, company formation agent, or you prefer an intermediary to handle filings, an ACSP will do the verification for you. That route can save time if you’re dealing with multiple roles or prefer a one-stop service, though some providers may charge a fee. Either way, Companies House issues a personal code after successful verification and that code must be quoted in statements tied to each company role.

Most people will only need to verify once, which reduces friction. But if you serve multiple companies, you’ll still include the same personal code with each company’s confirmation statement. Small firms should check their Companies House deadlines now , the due date depends on when you filed last and the rollout schedule.

What happens if you don’t comply and how strictly it will be enforced

Companies House has been clear: failing to verify on time is an offence. Consequences include financial penalties, referral to the Insolvency Service, or court action in serious cases. For aggravated or clearly criminal activity, the registry says it will use its strongest powers and work with law enforcement to pursue prosecutions and asset recovery.

That sounds severe, but the enforcement approach is tiered. For honest mistakes there’s guidance and probably time to fix the paperwork. The tougher action is aimed at those using companies as fronts for illegal activity , and the government has highlighted recovered criminal assets as part of the wider crackdown. If you’re a legitimate business owner, follow the verification steps and file your confirmation statement with the personal code to stay on the right side of the rules.

Simple steps to prepare now and avoid last-minute panic

Start by checking who in your company is a director or PSC and whether they’ve already verified. If not, flag them and send clear instructions: either a link to the GOV.UK One Login verification or the contact details for your ACSP. Collect proof of identity early , passports and driving licences work best , and make sure people understand the personal code must be included in each confirmation statement.

If you use an accountant or company formation service, ask them how they’ll handle verification and whether they’ll charge. For businesses with multiple directors or complex ownership, set a small internal checklist so no one slips through the cracks. And keep a copy of the verification confirmation , it’s a small piece of paperwork that prevents fines and headaches later.

What this means for trust, investment, and the future of the register

In short, the goal is cleaner records and more confidence. Accurate information on the register should help attract investment and make commercial decisions easier, because you’ll have clearer sight of who’s behind a company. It also means fewer fake companies being used for illegal trade, which benefits legitimate small businesses that have been undercut or exposed to risk.

Some business owners will grumble about another administrative step, but many will welcome the trade-off: less fraud and a stronger market reputation. As Companies House tightens identity checks, expect more rigorous scrutiny of filings and a quieter, more trustworthy register over time. It’s one of those changes that feels small on a form but big for everyday trading.

Ready to make compliance simple? Check Companies House deadlines and verify today so you can focus on running your business, not chasing paperwork.