Under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), every company director and person with significant control (PSC) in the UK must verify their identity with Companies House. Mandatory verification began on 18 November 2025, and existing directors are being brought in during a 12-month transition, usually when they file their next confirmation statement. Acting early is the simplest way to avoid rejected filings, last-minute pressure and potential penalties.
This is one of the largest changes to UK company law in decades. For directors it is not a technicality buried in legal jargon: it affects who can be appointed, what can be filed and whether you remain compliant as an officer of the company.
What ECCTA Changes for Directors
ECCTA was introduced to tackle fraud, improve the accuracy of the public register and bring Companies House closer to modern anti-money laundering standards. Before the Act, anyone could be named as a director with almost no checks. Identity verification closes that gap by linking each individual on the register to a confirmed real person.
The scale is significant. According to a detailed report from the Edinburgh Reporter, as many as 5 million people may be affected by the reform: https://theedinburghreporter.co.uk/2025/09/big-shake-up-in-company-law-eccta-identity-verification-i-5m-people-affected/
In practice, the new rules mean:
- New directors must verify their identity before or at the point they are appointed.
- Existing directors must verify within the transition period, generally by the date of their company’s next confirmation statement.
- PSCs must also verify and provide their personal code to Companies House within the required window.
- LLP members with designated or equivalent roles are covered by the same regime.
Once verified, each person receives a unique Companies House personal code that links them to every company role they hold, so verification only has to be done once rather than for each company.
Who Needs to Verify
The rules apply to individuals rather than companies, so it helps to map out every person connected to your business.
| Role | Must verify? | When |
|---|---|---|
| New company director | Yes | Before or at appointment |
| Existing company director | Yes | During the transition, usually with the next confirmation statement |
| Person with significant control (PSC) | Yes | Within the window set by Companies House for their role |
| LLP designated member / member | Yes | Same regime as directors |
| People filing on behalf of a company | Yes, unless filing through an ACSP | Before making filings |
If you hold several roles across different companies, one verification and one personal code cover them all. Exact timings can depend on your company’s confirmation statement date, so check the current guidance from Companies House on GOV.UK for your circumstances.
How to Verify Your Identity: Step by Step
There are two routes, and both lead to the same result: a personal code you give to Companies House.
- Choose your route. You can verify directly using GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP), such as an accountant or company formation agent registered with Companies House.
- Gather your documents. For the GOV.UK One Login route, a biometric photo ID such as a UK passport or UK photocard driving licence makes the process quickest. If you lack suitable ID, an ACSP can usually verify you using other documents.
- Complete the checks. The GOV.UK route typically involves scanning your ID and taking a photo or short video on a smartphone app. An ACSP will carry out its own checks under anti-money laundering rules.
- Receive your personal code. Keep it safe; you will need it for current and future company roles.
- Link the code to your company roles. Provide the code when filing your confirmation statement or when prompted for new appointments.
- Record completion internally. Note the date each director and PSC verified so the board has a clear compliance record.
GOV.UK One Login or an ACSP?
| Factor | GOV.UK One Login | ACSP |
|---|---|---|
| Cost | Free | Usually a fee set by the provider |
| Speed | Often same day if your ID scans cleanly | Depends on the provider |
| Best for | Directors with a UK passport or photocard licence and a smartphone | Those without suitable ID, overseas directors, or companies wanting one firm to handle everyone |
| Support | Online help only | Personal help and follow-up |
Many small companies use GOV.UK One Login for individual directors and ask their accountant to help with anyone who struggles. Larger groups with many officers and overseas PSCs often find an ACSP easier to coordinate.
Why Acting Early Matters
Some directors are tempted to wait until the final deadline. That is a false economy, for three reasons:
- Avoiding bottlenecks: as the transition period ends, Companies House and service providers face a surge in demand, and any problem with your ID becomes harder to resolve quickly.
- Protecting filings: if a director’s verification is missing when it is required, filings such as the confirmation statement may be rejected, and the company’s records can fall out of date.
- Reputation and trust: lenders, investors and partners increasingly check the register, and an incomplete record raises questions you would rather not answer.
The Edinburgh Reporter’s coverage of the shake-up underlines how widespread and urgent the change is: https://theedinburghreporter.co.uk/2025/09/big-shake-up-in-company-law-eccta-identity-verification-i-5m-people-affected/
The Compliance Risks of Waiting
ECCTA gives Companies House stronger powers to query and reject information. Under the Act, acting as a director without verifying your identity can be a criminal offence for the individual and the company, and Companies House can impose financial penalties. Filings may be rejected, and the public register can show that a director’s identity has not been verified, which other businesses will notice.
In practical terms, an unverified director can block routine but important updates, from submitting the confirmation statement to recording changes in shareholders, PSCs or registered office. For companies applying for finance or completing a sale, that delay can be costly.
This article is general information rather than legal advice. If your company has an unusual structure, overseas officers or corporate PSCs, speak to a solicitor, accountant or ACSP about your specific obligations.
Common Mistakes to Avoid
- Assuming the company secretary covers everyone. Each director and PSC must verify personally.
- Forgetting dormant or side companies. Directors of small or dormant companies have the same duty.
- Ignoring PSCs who are not directors. Investors or family members with significant control often miss Companies House communications.
- Letting the authentication code and personal code get mixed up. The company authentication code and your personal verification code are different things.
- Leaving it until confirmation statement week. If your ID scan fails, you will need time to switch to an ACSP.
A Quick Director Checklist
- List every director, PSC and LLP member linked to the company.
- Note your company’s next confirmation statement date.
- Check each person has suitable photo ID or arrange an ACSP.
- Ask everyone to verify and send their personal code to the company secretary or adviser.
- Keep a dated log of completed verifications.
- Brief new directors before appointment so they verify in advance.
Bottom Line for UK Directors
ECCTA’s new identity verification rules are not optional and the transition period is short. Verify now, collect personal codes from every director and PSC, and tie the process to your confirmation statement date. A few minutes of preparation protects your filings, your company’s reputation and your own position as a director.
FAQs
Who has to verify their identity under ECCTA?
All company directors, persons with significant control and LLP members must verify their identity with Companies House. People who file documents on behalf of a company must also verify unless they file through an Authorised Corporate Service Provider.
When did identity verification become mandatory?
Mandatory identity verification began on 18 November 2025. New directors must verify at appointment, while existing directors are covered by a 12-month transition and usually verify when their company files its next confirmation statement.
Is Companies House identity verification free?
Verifying directly through GOV.UK One Login is free. Authorised Corporate Service Providers, such as accountants or formation agents, usually charge a fee for verifying on your behalf.
What happens if a director does not verify?
Filings such as the confirmation statement may be rejected and the register may show the director as unverified. Under ECCTA, acting as a director without verification can also be an offence, with possible penalties for both the individual and the company.
Do I need to verify separately for each company?
No. Once verified, you receive a single personal code that links to all your roles, so you provide the same code for every company where you are a director or PSC.
