Starting in 2026, every company director in the UK must verify their identity with Companies House under the Economic Crime and Corporate Transparency Act 2023. This isn't optional admin—it's a legal requirement with serious consequences for non-compliance. If you're a director and haven't verified your identity yet, you could face penalties, filing rejections, and even criminal prosecution. This guide explains everything you need to know about the new identity verification requirements, what happens if you don't comply, and how to complete the process correctly.

Verification Timeline Still Being Finalized

The identity verification system is launching in 2026, but some implementation dates are subject to confirmation by Companies House. Always check the official GOV.UK guidance for the latest timeline and requirements.

What is the Economic Crime Act 2023?

The Economic Crime and Corporate Transparency Act 2023 is the biggest shake-up of UK company law in decades^[1], designed to crack down on money laundering, fraud, and economic crime by making company ownership transparent and verifiable.

Why the Change?

For years, criminals exploited gaps in UK company registration to hide their identities, launder money, and commit fraud. The problem was simple: Companies House didn't verify who directors actually were. You could register a company with fake details and there was no meaningful check.

The Scale of the Problem

Companies House estimates that a small percentage of UK companies are set up for criminal purposes, including fraud, money laundering, and other economic crimes^[2].

The Act transforms Companies House from a passive register into an active gatekeeper, with powers to verify, investigate, and refuse filings.

What Does This Mean for Legitimate Directors?

If you're running a legitimate business, this is mostly good news—it levels the playing field and protects your reputation. But it does mean new compliance requirements you must meet.

The core change: Companies House will now verify the identity of every director, every person with significant control (PSC), and every person filing documents on behalf of a company.

The New Identity Verification Requirements

Starting in 2026, Companies House requires identity verification for all directors, PSCs, and authorized filing agents^[3]. Here's exactly what you need to do.

Who Must Verify Their Identity?

All company directors (new and existing)
All people with significant control (PSCs)
Anyone filing documents on behalf of a company
Company secretaries (if appointed)
LLP members and designated members
Proposed directors of new companies

When Do You Need to Verify?

Identity verification is rolling out in 2026. While Companies House hasn't published the exact implementation dates yet, the verification system is expected to launch in stages:

Important: Timeline Subject to Change

The specific dates below are based on current Companies House guidance and government announcements. Check the official GOV.UK identity verification page for the latest confirmed timeline.

Identity Verification Timeline

February 2026: Verification Opens

Identity verification services launch

Directors can start verifying voluntarily to get ahead

March 2026: New Incorporations

All new company formations require verified directors

Cannot incorporate a company without verified identity

April 2026: New Appointments

New director appointments require verification

Existing directors can still file without verification (temporarily)

October 2026: Full Enforcement

ALL directors must be verified to file any documents

Unverified directors cannot file confirmation statements, accounts, or any other forms

Critical Deadline

October 2026: Existing directors must be verified

If you're already a director as of February 2026, you have until October 2026 to complete identity verification. After that date, you won't be able to file any documents until you're verified.

How Identity Verification Works

Companies House offers three routes to verify your identity, depending on your circumstances:

Route 1: Online Verification (GOV.UK One Login)

The fastest and easiest method for most directors:

What you'll need:

✓A valid UK passport OR UK driving license

✓A smartphone or computer with camera (for biometric checks)

✓Access to your email and mobile phone number

✓About 10-15 minutes to complete the process

The online process uses facial recognition technology to match your face against your photo ID document. It's similar to opening a bank account online or verifying for other government services.

Route 2: Paper-Based Verification

If you can't use online verification (no suitable ID, technology barriers, etc.), you can verify by post:

Complete a paper verification form
Provide certified copies of identity documents (passport, birth certificate, etc.)
Get documents certified by a solicitor, accountant, or other approved professional
Mail everything to Companies House
Wait 4-6 weeks for processing

This route is slower and more expensive (certification fees apply), but it works for everyone.

Route 3: Authorized Corporate Service Provider (ACSP)

Authorized agents (accountants, lawyers, formation agents) can verify your identity on your behalf^[4]. This is useful if you're already working with a professional advisor.

Your ACSP will conduct their own identity checks and then vouch for your identity to Companies House. They typically charge a fee for this service (£50-£200 depending on the provider).

One-Time Verification

Good news: You only need to verify your identity once. Once you're verified, you'll receive a Companies House Personal Code that you can use for all your directorships across any number of companies.

What Happens If You Don't Verify?

This isn't optional compliance—it's a legal requirement with serious consequences.

Consequences of Non-Verification

Cannot file documents

After October 2026, unverified directors cannot file any documents with Companies House—including confirmation statements and accounts. This means automatic late filing penalties.

Cannot be appointed to new companies

You won't be able to take on new directorships or form new companies until you're verified.

Automatic late filing penalties

If you can't file accounts or confirmation statements because you're unverified, you still face late filing penalties (criminal fine up to £5,000 for confirmation statements; £150 to £1,500 for accounts)^[5].

Company strike-off risk

If filings are repeatedly missed due to unverified directors, Companies House can initiate strike-off proceedings, dissolving the company.

Criminal prosecution

Acting as a director without proper verification when required can result in criminal charges under the Act.

The message is clear: verify early, avoid the rush, and don't risk your company's compliance status.

Common Identity Verification Questions

What if I'm a director of multiple companies?

You only verify once. Your Companies House Personal Code works across all your directorships. You don't need to verify separately for each company.

What if I'm a foreign director (not a UK resident)?

International directors must also verify their identity, but the process is different^[6]. You'll need to use the paper verification route or work through an authorized agent who can verify international documents.

Accepted international documents include passports from any country, national ID cards (from countries that issue them), and certified translations if documents aren't in English.

What if I don't have a passport or driving license?

You can use the paper-based verification route with alternative documents:

Birth certificate (UK)
Adoption certificate (UK)
National ID card (EEA countries)
Bank statements and utility bills as supporting evidence
Certified by an approved professional (solicitor, accountant, etc.)

What if my identity documents have a different name?

If you've changed your name (marriage, deed poll, etc.), you'll need to provide evidence of the name change alongside your identity documents. This could be a marriage certificate, deed poll certificate, or statutory declaration.

Can I verify before it's mandatory?

Yes! Companies House encourages early verification. If you verify in February-March 2026, you'll avoid the rush later in the year when many directors will be scrambling to meet the October deadline.

How long does verification last?

Once verified, your verification doesn't expire. Your Companies House Personal Code remains valid indefinitely, unless Companies House specifically requests re-verification in the future (which is not currently planned).

Impact on Company Formation and Changes

The verification requirements affect more than just existing directors—they fundamentally change how companies are formed and managed.

New Company Incorporations

From March 2026, you cannot incorporate a new company unless all proposed directors have verified their identity first. This means:

Each director must complete identity verification
Receive their Companies House Personal Code
Provide their Personal Code when registering the company
Only then can the company be incorporated

This adds a new step to the company formation process. If you're planning to start a company, budget an extra 1-2 weeks for identity verification before you can incorporate.

Appointing New Directors

From April 2026, any new director appointments require the incoming director to be verified first. The appointment form (AP01) will require the director's Companies House Personal Code.

This means you can't make someone a director overnight anymore—they need to complete verification first.

PSC Changes

People with Significant Control must also verify their identity. If a new PSC is registered, or PSC details change, the individual must be verified and their Personal Code provided.

Other Key Changes Under the Economic Crime Act

Identity verification is just one part of the Act. Other significant changes include:

Enhanced Powers for Companies House

Power to reject filings that appear suspicious or false
Power to request additional evidence or information
Power to remove false information from the register
Power to query company names that appear misleading
Duty to proactively investigate suspected fraud

Companies House transitions from passive record-keeper to active gatekeeper, with investigative powers similar to law enforcement agencies^[7].

New Criminal Offenses

Using a company for fraudulent purposes: criminal penalties apply
Filing false information: unlimited fines and potential imprisonment
Providing false information to Companies House: criminal prosecution
Acting as a director while disqualified: up to 2 years in prison

Increased Transparency

Registered office addresses must be appropriate for official correspondence
Email addresses become mandatory for all companies
Shareholder information becomes more detailed and verified
Enhanced reporting of PSC details and ownership structures

How to Prepare: Action Steps for Directors

Don't wait until the last minute. Here's your action plan:

Identity Verification Action Plan

✓Check you have valid photo ID (passport or driving license) - renew now if expiring soon

✓Ensure your Companies House director details are accurate (name, date of birth, nationality)

✓Update your contact details with Companies House (email and correspondence address)

✓Create a GOV.UK One Login account if you don't have one

✓Complete identity verification as soon as it opens in February 2026

✓Store your Companies House Personal Code securely (you'll need it for all future filings)

✓Inform co-directors and PSCs to verify their identity too

✓Update your company formation and director appointment processes

Don't Leave It Until October

A large number of directors will need to verify by October 2026. The closer you get to the deadline, the more likely you'll face delays due to system overload, document processing backlogs, or technical issues. Verify in February or March 2026 to avoid the rush.

How CHWatch Helps You Stay Compliant

With identity verification deadlines and enhanced Companies House scrutiny, staying on top of compliance has never been more critical.

Automated deadline tracking for confirmation statements and accounts (so you can file on time, even with verification delays)
Real-time alerts when Companies House updates your company record (catch any rejected filings immediately)
Multi-company dashboard to track verification status across all your directorships
Email and Slack notifications for upcoming deadlines and regulatory changes
Monitor when new directors or PSCs need to complete verification before appointments

Don't risk penalties, strike-off, or criminal prosecution because of a missed deadline or incomplete verification. Get automated monitoring for all your companies and ensure you never miss a critical filing deadline again.

References

[1]
Economic Crime and Corporate Transparency Act 2023 Available at:www.legislation.gov.uk/ukpga/2023/56/contents/enacted
[2]
Economic Crime and Corporate Transparency Act 2023: Companies House reform factsheet Available at:www.gov.uk/government/publications/economic-crime-and-corporate-transparency-act-2023-factsheet/factsheet-companies-house-reform
[3]
Prove your identity for Companies House Available at:www.gov.uk/guidance/prove-your-identity-for-companies-house
[4]
Authorised corporate service providers Available at:www.gov.uk/guidance/authorised-corporate-service-providers
[5]
Late filing penalties Available at:www.gov.uk/government/publications/late-filing-penalties
[6]
Prove your identity for Companies House: if you live outside the UK Available at:www.gov.uk/guidance/prove-your-identity-for-companies-house/if-you-live-outside-the-uk
[7]
Economic Crime and Corporate Transparency Act 2023: Factsheet Available at:www.gov.uk/government/publications/economic-crime-and-corporate-transparency-act-2023-factsheet