UK Requires ID Verification for Company Directors

London 

In a sweeping reform aimed at tightening corporate transparency, the UK government today mandated identity verification for all new company directors and people with significant control – a major step under the Economic Crime and Corporate Transparency Act of 2023. The change goes into effect immediately for new appointments, while existing directors have a 12-month grace period to verify.

The verification process must be completed via the government’s One Login system or through authorized corporate service providers, who are licensed to validate identities for a fee. Once verified, directors receive a personal code that must be used in future filings with Companies House.

The reform responds to longstanding concerns that shell companies and bad actors have abused weak registration controls. Officials say requiring real identity at the point of registration will help prevent fraud, money laundering, and economic crime.

Under the new rules, non-verified individuals may face serious consequences: Companies House could refuse to register them, and acting as a director without verification may become a criminal offence. People with significant control who fail to complete verification may also face penalties.

Home Secretary Shabana Mahmood praised the overhaul as “a vital change to protect the integrity of UK business.” But privacy advocates have raised concerns: while digital safeguards exist, some warn that directors’ personal information will now be more closely tied to their corporate role.

Starting today, the system opens for new directors. Companies are being urged to check leadership rosters and act promptly otherwise, they may be blocked from lawful operations; for older directors, the 12-month window allows time to comply.

The reform reflects the government’s broader ambition: to restore trust in the UK business registry, push out illicit corporate activity, and end the use of “abusive, opaque” entity structures. Business leaders and lawyers, meanwhile, are advising clients to begin the verification process now to stay ahead of the changes.

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