How to Verify Your Identity with Companies House: Everything UK Directors Need to Know

You know what’s the best thing about registering a new startup in the UK? Well, this country has the most flexible registration system in the world, but it comes with a disadvantage. Earlier, you were allowed to register for a company without any proof or identification process. Because of this, many tried to gain advantage by setting up fake companies and misusing funds to hide their illegal money as well. Now, the good news: this era is finally ending. As per the new Corporate Transparency Act, you need to verify your company with Companies House, and significant members such as directors and managers need to submit the complete information regarding their business, and it’s necessary. This new act is modernising how new companies and businesses are formed in decades. So, if you are running or planning to operate in the UK, make sure to follow all these rules that are applicable for you.

Why is Companies House required for identity verification?

This new act is established after so many decades in the UK, as the government wants more transparency and accountability amongst new businesses. This is also established for the prevention of any fraudulent activities done by new agencies that were once untraceable. Through proper verification, Companies House wants to eliminate any fake ones from the register and wants to stop criminals from hiding behind the shell companies. Hence, the only goal of this law is to compel companies to complete their verification through a legal entity. For legitimate directors, this is a huge administrative step which ultimately closes any loopholes in the system permanently.

Who needs to verify their identity?

Identifying the right ownership is necessary for the main heads and administration of the company, such as:

• Directors of limited companies in the UK
• Any members of LLPs
• People with significant control
• It also applies to third-party agents who want to file documents at Companies House

It’s also important to remember that any existing team establishing a member or new director needs to complete the process, and it doesn’t matter whose name is on the ownership statement.

When will identity verification become mandatory?

There is a proper digital system to complete the process, and the law is already passed in the legislative assembly. The verification process, which was initiated in late 2024, is slowly being applied this year. Existing companies have already been informed about this law and the process of the verification. While new ones can only complete the process once their directors complete their identification process. In case of ignored deadlines and time frames, the authorities will levy hefty fines, and strict action will be taken against their business.

How does the Companies House identity verification process work?

The identification process works like everything else and is easier because it’s digital. It’s designed to be a fast and reliable way to get verified for both new and old companies. You can easily complete the process through an online portal or simply upload the photo to complete a facial biometric process. If it matches the documentation provided, the verification process will be marked as completed. For the existing ones, this process is simple and takes only a few minutes. Another quick way to complete the process is to work with an authorised accountant. A firm such as Integrity Accountancy Service Ltd. can manage the entire procedure through the company’s secretariat, taking care of the identification requirements for you. If the online steps feel confusing or the paperwork is becoming too much, this option keeps everything simple and stress free.

What happens if a director doesn’t verify?

If you don’t wish to get involved in the process or ignore the warning, then Companies House will have to take stricter action against you. Directors who are not responsible then:

• They will be removed from their position.
• Will face criminal and civil charges
• Will come under the scrutiny of the authorities, and the company will also face the consequences

There are also other penalties and fines for such negligence. In extreme cases, companies will be struck out of the register in the future.

Will overseas directors need to complete this verification process?

Yes. The current rule applies to any company or business existing in the country. And all the rules are applicable to every company director, whether they reside in the UK or not. Anyone living abroad can use the digital process to complete the verification process or hire an expert accountant to do so. This new system is to regularise new companies and global ones while ensuring transparency.

Identity verification for new company formations

Under the new system, if the company is fully active, then no new company will be formed unless director verification has been done. This rule prevents any new company formation and blocks its access until the verification is done.

Preparing Your Company for the New Rules

You can prepare for the new rules and regulations after the launch of the system, as preparation now will make the transition easier. It will also prevent any delay in the Identity verification process. All the deadlines and notifications are sent through mail, so Companies House directors need to add correct details in accordance with the timeline. Businesses can use chartered accountants to find any noticeable changes and to handle the process, statements and formation services accurately.

Why does identity verification matter to UK businesses?

This new law adds a professional requirement to company administration and strengthens the UK business environment. Keeping track of the registry will also increase trust, protect honest companies, and minimise the risk of fraudulent activities. For companies dealing with these suppliers, banks and investors will feel safe and enhance credibility also. If you are an accountable business owner, then this change is not a burden but a long-term benefit.

Final Thoughts

Companies House’s identity verification will change the way businesses in the UK function.  Regardless of whether they are managing a startup or an existing business, each director, PSC, and filing agent will need to provide identification. The digital process will be simple, fast, and safe for every business owner. So, be the responsible business owner and complete the verification process in order to be a righteous director.