New ID Rules for Company Directors and PSCs

If you’re a company director or PSC, new identity verification rules are coming your way. You won’t be able to start or run a company unless you verify your identity with Companies House. Here’s what you need to know to stay compliant.

Key Takeaways

• All company directors and People with Significant Control (PSCs) will soon need to verify their identity with Companies House.

• Unverified individuals won’t be allowed to act as directors or PSCs once the new rules are fully in place.

What Are the New ID Rules for Directors and PSCs?

Under the Economic Crime and Corporate Transparency Act, all company directors and People with Significant Control (PSCs) must verify their identity with Companies House.

This will soon become mandatory. If you don’t verify your ID, you won’t be allowed to form a company, act as a director, or make filings.

This is part of wider changes to company law designed to improve transparency and prevent fraud in the UK business register.

Do I Need to Verify My Identity - and How Do I Do It?

Yes, if you're a company director or a Person with Significant Control (PSC), you’ll be legally required to verify your identity with Companies House.

You can verify your identity in two ways:

• Online through Companies House, using a GOV.UK One Login and a valid ID (like a passport or driving licence)

• Through your accountant or agent, if they’re approved as an Authorised Corporate Service Provider (ACSP). To do this, the provider must complete the UK Companies House ACSP registration process.

Once your identity is verified, you’ll be allowed to act as a director or PSC and submit company filings as usual.

What If I Don’t Verify My ID?

If you don’t verify your identity when it becomes mandatory, here’s what could happen:

• You won’t be allowed to act as a director or PSC

• You won’t be able to form a new company

• Your company’s filings could be rejected

• You may face fines or even criminal penalties

To avoid this, make sure to verify your ID as soon as it becomes required.

What We Think

We think this is a positive step, but it could create extra hassle for company directors and PSCs, especially those who aren’t closely following Companies House changes.

Some people might not realise their details are outdated or don’t match their ID until it’s too late. That’s why it’s worth checking now and making sure everything’s in order before this becomes mandatory.

We also think the process should be made as simple as possible, with clear guidance for anyone unfamiliar with online systems. The last thing anyone needs is a delay or fine because of something that could’ve been avoided with better support.

How JAFA Can Help

We understand that staying on top of changing rules isn’t always easy, especially when the process feels unclear.

That’s why JAFA can:

• Review your company records and flag anything that might cause issues during ID verification

• Help you prepare early, so you’re ready as soon as the rules come into force

• Explain the steps clearly, so you know what to do and when to do it without confusion

Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.