New rules for UK companies: Mandatory ID checks for directors
New requirements regarding the identification of company directors and persons with significant control (PSCs) will come into force in the UK on November 18, 2025. These changes are related to the implementation of the Economic Crime and Corporate Transparency Act 2023 and are aimed at increasing trust in business, protecting against fraud, and strengthening corporate transparency.
What will change
- New directors must verify their identity before registering a company or appointing a position in an existing organization.
- Existing directors will be required to complete the verification process within 12 months and confirm their identity when filing their annual return.
- Persons with significant control (PSCs) must also verify their identity within 12 months of the introduction of the mandatory procedure.
Each verified individual will be assigned a personal identification number, which must be provided when taking up any position within the company.
Why are the changes being introduced
The main goal of these changes is to protect businesses from unlawful activity, ensure the accuracy of company register data, and increase transparency in the corporate sphere. These measures will allow companies to operate in a more secure environment, and investors and consumers will have greater confidence in the companies with whom they do business.
Phased Implementation
Identity verification will be introduced gradually to allow companies and individuals sufficient time to adapt. It is estimated that by mid-November 2026, approximately 6-7 million people will have to undergo identification. For most, the procedure will be a one-time process and will take only a few minutes.
Consequences of Non-Compliance
Current directors who fail the verification will be considered in breach of the law. However, the registration authority will take a proportionate approach to monitoring, with an emphasis on supporting companies during the transition.
Additional Details
- The PSC will have 14 days to submit proof of identity verification. The period is calculated based on the date of incorporation and other circumstances.
- For other categories—such as corporate directors, LLP partners, or corporate officers—the requirements will come into effect later.
- From March 2024, all companies will be required to provide a valid email address for official notifications.
Conclusion
The new rules will be an important step toward creating a more reliable and transparent business environment in the UK. They will provide a higher level of protection for entrepreneurs, investors, and partners, and will increase trust in the country's corporate system.
IT-OFFSHORE is ready to provide professional assistance with the identification process and compliance with all new legal requirements.
