Company directors must deal with new identity checks; learn how to avoid having to pay hundreds for verification

Directors of the company may have to pay hundreds of pounds to comply with the new identity checks, but it is possible to comply for free

In the upcoming months, company directors will have to submit to additional ID checks, but many may have to pay hundreds of pounds to comply.

In order to combat scams, Companies House is implementing new regulations starting in the fall of 2025 that require identity verification for all directors of limited companies and anyone with substantial control.

The Economic Crime and Corporate Transparency Act established the regulations, which have been optional since April 2025.

They will be required starting this fall, so directors of the company will have to finish an identity check before they can send a confirmation statement to verify their business information.

Directors who do not comply may face sanctions from Companies House or even be disqualified.

Of the six to seven million people who are expected to verify their identification, over 200,000 have done so, according to its own data.

The BFIA has discovered that some company directors are still ignorant of the changes and are perplexed by the emails sent by Companies House. Additionally, we have seen instances of people encountering technical difficulties.

Some accountants are charging 45 to complete the process while some law firms have fees of around 250.

That's even though the ID check only takes a few minutes to finish.

What you should know is as follows.

What identity changes have been made to Companies House?

Anyone starting, managing, owning, or controlling a business in the UK will have to provide identification as proof that they are who they say they are starting in the fall of 2025.

Enhancing the accuracy, transparency, and trustworthiness of the data on the Companies House register while lowering the risk of fraud is the goal.

You only need to complete the ID check once.

Partner Adam Cockroft, who leads Ramsdens Solicitors' corporate and commercial team, stated: "Improving transparency is the straightforward goal, but there are significant real-world ramifications for businesses.

These reforms seek to change how businesses are run and how data is documented by emphasizing accountability and transparency more. Identity verification will soon become a defining characteristic of UK corporate life as Companies House moves closer to implementation.

However, many directors of the company have been caught off guard, even though the changes have been voluntary since April.

Directors of companies have been receiving emails from Companies House. notifications at [email protected].

This email address is legitimate, but with the increase in scams, some people have doubted its authenticity and have only taken action when their accountant asked them to.

How to obtain a free identity verification from Companies House.

You can confirm that you are the director of the company in three different ways.

The simplest method is to verify online, but this requires creating a free Gov . uk One login.

You will need to remember a different login and password because this is not the same as your Companies House account or government gateway.

You must download the Government One Login app after creating a login.

To verify your identity, you will then need to take a selfie with your smartphone after using the app to scan a passport or driver's license.

Another option is to submit a bank statement online without taking a picture.

When you or your accountant file a confirmation statement for your company, you will be given a code from Companies House that verifies your identity check if you are accepted.

You can also use an accountant or lawyer, or if you have a One Login set up, you can get assistance at the Post Office.

How simple is it to provide Companies House with proof of identity?

After logging in and connecting to your Companies House business account, the ID check only takes a few minutes to finish.

If you are a business owner or have a company with a small number of directors, that should make the process simple.

However, some customers are being pressured to pay for a service that doesn't take long because of complaints about technical difficulties.

Principal Rob Peters of Simple Fast Mortgage told BFIA. In theory, most directors and accountants support ID checks because nobody wants fraud in the system, but a lack of precise guidelines has led to misunderstandings.

Third parties are quoting exorbitant fees to some clients, while others are attempting to do it themselves but are unsure of how to proceed. The system didn't function properly when I attempted to do it myself. Other firms charge up to 250, but my accountant charged me 75 to finish it.

Rohit Kohli of The Mortgage Stop, another broker, continued: "It's been a bit of a farce so far, from receiving a request out of the blue without any real explanation to the actual procedure of doing it.

"You must create a new login in addition to using your old Government Gateway and Companies House logins.

The system kept stating that something went wrong and that we should try again later when we attempted to do it yesterday. The post offices are all closing, but I would still visit one.

Despite the uncertainty and challenges, Meg Ogunsola, global director of entity management solutions at Vistra, a business advisory firm, cautions that compliance is essential.

She said: "Firms that delay verification and do not comply could face serious consequences. In addition to the companies they represent, directors and other individuals with substantial control may be prohibited from filing documents, participating in acquisitions, or even disqualified as company officers. These actions could result in long-term operational and reputational harm.

"There could also be serious financial consequences, such as uncapped fines. As demonstrated by earlier regulations like the GDPR, regulators will not hesitate to highlight the repercussions of non-compliance, and companies that fail to comply may be used as case studies.

"Companies House is reaching out to all companies with advice and guidance in order to support business and assist individuals in confirming their identities," a government spokesperson stated.

This is a component of a concerted effort to assist businesses in complying before it becomes mandated by law.

"We advise people to check as soon as they can.

"GOV is centered on inclusion. The UK One Login was created with people who require digital assistance in mind. Simple content, in-person identity verification at the Post Office, and contact center support are all provided, and it is regularly tested by users to make GOV. Make the UK One Login as easy as you can.