Companies House has confirmed that mandatory identity verification for company directors and people with significant control (PSCs) will begin from 18 November 2025, in one of the most significant transparency reforms in UK corporate governance in decades.
Under the new rules, new directors must verify their identity to register a company or accept a directorship. Existing directors will be required to verify their identity when filing their next confirmation statement, during a 12-month transition window. Existing PSCs must verify their identity in line with an appointed date to be confirmed, also within the same year-long period.
Companies House estimates that between 6 and 7 million individuals will need to complete the process by November 2026, with most able to do so in just a few minutes online. More than 300,000 individuals have already voluntarily verified their identity since the system’s soft launch in April.
The new system aims to combat fraud, deter phoenix companies, and improve the accuracy of the company register, providing investors, regulators, and the wider business community with greater confidence about who controls UK companies.
Louise Smyth CBE, Chief Executive of Companies House, said identity verification would play a “key role” in tackling misuse of the companies register and improving the quality of corporate data in the UK.
“We’re contacting all companies with advice and guidance. This is part of a coordinated effort to help companies to comply. We encourage people to verify as early as possible,” Smyth said.
The reforms have been broadly welcomed across the business community, though some have questioned why it took so long to implement such a fundamental safeguard.
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said: “Verifying my identity was quick and easy. It’s something that should always have been in place, but wasn’t. It should make it clearer who owns what and protect against fraud. Hopefully, it will clearly show those directors who consistently phoenix their companies.”
Ollie Hayes, Director of Bath-based gym So Fit Bath, echoed those concerns. “How — and why — is this only being done now? I know someone who had a company set up in their name without their knowledge. It’s startling how easy that has been. This is a welcome step, but it feels like Companies House is behind the curve.”
While many support the policy in principle, some directors with multiple company roles expressed concern over the administrative burden.
Sam Alsop-Hall, co-founder of Clive Henry Group, said: “As someone with 11 companies and stakes in several more, the idea of verifying my identity across every role already feels like a full-time job. I just hope the process is as simple as resetting a password with IT support.”
However, Alsop-Hall said the reform was about more than admin.
“This isn’t just a compliance box-tick — it’s about accountability. Stronger identity checks will make it harder for bad actors to disappear and reappear under new companies, and help create a fairer playing field for those running businesses properly. If the UK wants to remain a credible and investable place to do business, changes like this are essential.”
The reform has been welcomed by those seeking stronger action against phoenix companies—where directors dissolve a business to avoid debts or legal obligations, only to reincorporate under a different name.
Several business owners say they hope the new identity checks will expose repeat offenders and increase public trust in the UK’s business ecosystem.
Companies House has stated that directors and PSCs will be able to track verification due dates via the register from 18 November, and that extensive guidance will be made available to help companies meet their obligations.
As UK businesses prepare for the November rollout, the message from regulators is clear: identity verification is not just an administrative task — it’s a foundational step toward greater transparency, fairness, and investor confidence in the UK economy.
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Companies House confirms identity verification rollout to tackle fraud and phoenix firms
