The United Kingdom’s commitment to corporate transparency and economic integrity has been significantly strengthened by the introduction of the Economic Crime and Corporate Transparency Act 2023 (‘the Act’). Among its array of transformative measures, one of the most consequential is the overhaul of director verification procedures.
The need for enhanced verifications
Economic crime, including fraud, money laundering, and illicit asset transfers, has long plagued the UK’s corporate sector. Weaknesses in director identification and corporate registration processes have enabled bad actors to exploit companies for criminal ends, undermining trust in British business. Prior to the Act, Companies House – the UK’s registrar of companies – lacked robust mechanisms to confirm the identity of company directors or it’s owners. This regulatory gap permitted the appointment of fictitious, fraudulent, or untraceable directors, contributing to the abuse of corporate vehicles.
Recognising these vulnerabilities, policymakers sought to modernise the corporate framework. The Economic Crime and Corporate Transparency Act 2023 emerged as a response to these challenges, aiming to make corporate entities more transparent, accountable, and trustworthy.
What’s changing?
From 18 November 2025, all new directors and persons with significant control (‘PSCs’) will be required to verify their identity at the point of incorporation.
There is a 12-month transition period for existing companies and LLPs which means that all existing directors, members and PSCs will be required to provide identity verification credentials when their next confirmation statement is due.
Whilst the mandatory compliance date remains a month away, we recommend that individual directors, LLP members and PSCs complete the verification as soon as possible to prevent delays in completing their annual confirmation statement.
How do you verify?
Before your next confirmation statement is due, if you fall into the category of director, member or PSC you will need to ensure you have had your identity verified.
PEM is registered to be an Authorised Corporate Service Provider (‘ACSP’) and can undertake these verifications on your behalf.
Alternatively, you can do this directly at the gov.uk One login which requires one of the following types of photo ID:
- biometric passport from any country
- UK photo driving licence (full or provisional)
- UK biometric residence permit (BRP)
- UK biometric residence card (BRC)
- UK Frontier Worker permit (FWP)
You’ll also need:
- your current address, and the year you moved in
- to sign in to or create a GOV.UK One Login.
If you do not have any of these types of photo ID but live in the UK, you can also verify yourself in person at the Post office.
Once the identity verification process is completed, each individual will be provided with a unique identity verification number (also known as personal code). This number must be kept safe as it will be required to demonstrate that the individual’s identity has been successfully verified.
Learn more and get advice
Please get in contact with us if you would like to know more about how PEM can help to get you verified.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key issues rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
