From 18 November 2025, UK company directors and people with significant control (PSCs) must verify their identities as a legal requirement, enhancing transparency and reducing fraud.
This mandatory process aims to protect investors and consumers by ensuring only legitimate individuals manage companies.
Understanding the New Identity Verification Rules
The upcoming changes in identity verification for UK company directors and PSCs mark a significant shift in corporate governance.
Starting from November 2025, new directors will need to verify their identities before joining or incorporating companies. Existing directors have a 12-month phased transition period to comply with these requirements.
Streamlined Process for Directors
- Identity verification is primarily a one-time online process via GOV.UK One Login.
- The service is free of charge, making it accessible to all directors and PSCs.
- Over 300,000 individuals have already voluntarily verified their identities since April 2025.
- Failure to comply will be considered an offence, but Companies House promises support and proportionate enforcement.
- Directors can check their verification due dates on the Companies House register starting November 2025.
Effect on UK Businesses
This initiative aligns with the Economic Crime and Corporate Transparency Act 2023, which aims to combat economic crime by improving data reliability.
By mandating identity verification, the UK government seeks to enhance trust in its corporate environment, potentially attracting more investment and supporting economic growth.
A Step Towards Greater Transparency
The integration of identity verification with GOV.UK One Login represents a move towards unified digital identity management across public services.
This could streamline identity checks in other sectors, reducing duplication and improving user experience beyond company registration. The initiative reflects lessons learned from previous efforts to enhance corporate transparency and data integrity.
Voices from Industry Leaders
Louise Smyth CBE, CEO of Companies House, emphasized that
“identity verification will play a key role in improving the quality and reliability of our data.”
Competition and Markets Minister Justin Madders MP noted that this change would boost investor confidence by ensuring greater transparency about business organizations.
AI and Digital Government Minister Feryal Clark praised the use of technology for making the process fast, secure, and user-friendly.
Additional Reading
To Sum Up
The mandatory identity verification for UK company directors starting November 2025 represents a crucial step towards enhancing corporate transparency.
By ensuring only legitimate individuals manage companies, this initiative aims to protect investors while fostering trust within the business community. As businesses adapt to these changes, they contribute positively towards reducing fraud risks across the sector.
More of Todays Top Breaking Government News Stories!
Sources: UK Government, TLT LLP Insight on Identity Verification, Companies House, and Reed Smith LLP Guidance on Companies House Identity Verification.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
