Upcoming ID Checks at Companies House

Here’s what you need to know about the upcoming ID checks at Companies House. From Autumn 2025, Companies House will implement mandatory ID checks for directors and persons with significant control (PSCs) of UK companies. This initiative aims to enhance corporate transparency and combat fraud, addressing concerns over the misuse of corporate structures for criminal activities like money laundering.

Key Features of the ID Check System

• Who Will Be Affected?

All directors and PSCs must complete an ID verification process.

• Verification Process

The process is expected to be user-friendly, with digital checks simplifying online verification.

• Existing Directors

Current directors will also need to verify their identities, submitting this information with their Confirmation Statement after a 12-month transition period.

• Timeline

The rollout begins in autumn 2025, providing ample preparation time. Companies House will issue further guidance as the date approaches.

• Penalties

Non-compliance may result in fines or restrictions on filing documents.

Implications for Businesses

• Increased Transparency

The requirement for ID verification should lead to greater transparency in corporate ownership and governance.

• Administrative Changes

Companies will need to review their internal processes to ensure compliance with the new requirements. This may involve updating records and ensuring that all directors, including existing ones, complete their ID checks promptly.

• Impact on Small Businesses

While larger corporations may have more resources to adapt to these changes, small businesses will also need to be aware of their obligations. Many small companies already rely on their accountant to help them with the filing of their Confirmation Statement. Companies House has recently confirmed that firms that undertake supervised anti-money laundering activities, such as accountants and solicitors, will be able to register as ‘Authorised Corporate Service Providers’, allowing them to help with the ID verification check.

Conclusion

These forthcoming ID checks are a significant step in strengthening corporate governance in the UK. Companies should prepare now for a smooth transition when the new requirements take effect.

Get In Touch

We will keep our clients updated as more details are released. For more information/advice regarding the upcoming ID Checks at Companies House, please contact your local Whitings LLP office today.

Disclaimer - All information in this post was correct at time of writing.