Understanding Companies House ID Verification Changes: A Guide for ACSPs

Why is Companies House changing its ID Verification process?

With the existing ID verification process, Companies House lacks complete visibility into who submits information to their system. This raises concerns about the data's integrity and accuracy. Forming a company is relatively simple, easy, and cheap - and until recently, Companies House has been little more than a data collector. These changes have the objective of promoting the integrity of the register.

This has meant bad actors have been able to exploit the system by setting up shell companies and submitting false information with minimal oversight or verification. With these new changes, Companies House is transforming from a passive registry into an active gatekeeper with investigative and enforcement powers.

These changes play a critical role in the UK's fight against financial crime, helping prevent fraud and money laundering.

Legal business structures are frequently exploited by criminal networks to:

• Disguise and facilitate illicit activities

• Launder money and evade detection

• Support criminal operations through legitimate-appearing business frameworks

• Conceal illegal activities across multiple sectors

Jargon buster: Key terms you need to know for Companies House verification

Key deadlines and what they mean for businesses

• From 4 March 2024: Companies House gains enhanced powers to query information and investigate suspicious activity, including stricter company name checks, new registered office address rules, and mandatory email registration. Companies must declare their activities are lawful, and Companies House can now share data with law enforcement agencies.

• From 1 May 2024: Fees increase to cover both current and future operational costs.

• From 28 February 2025: Eligible entities can apply to protect their trust member details.

• From 18 March 2025: Third-party providers conducting identity verification checks must register as an Authorised Corporate Service Provider (ACSP).

• From 8 April 2025: Individuals can voluntarily verify their identity, and ACSPs can confirm identity verification to Companies House.

• From 31 August 2025: Trust-related information in the Register of Overseas Entities becomes available upon request.

• Autumn 2025: Identity verification becomes mandatory for directors and PSCs.

• Spring 2026: ACSP registration becomes mandatory for submitting documents to Companies House.

Companies House Crackdown: Key enforcement actions so far

As of January 2025, Companies House have:

• Removed 60,700 suspicious or inappropriate registered office addresses

• Removed 47,200 officer addresses and 42,900 people with significant control (PSC) addresses

• Redacted 40,300 incorporation documents to remove personal data used without consent

• Removed 9,500 documents from the register, including false mortgage satisfaction filings which would have previously required a court order

This has affected 75,600 companies in total.

Who needs to verify their identity under the new system?

The Economic Crime and Corporate Transparency Act (ECCTA) introduces mandatory identity verification requirements (from Autumn 2025) for:

• All new and existing company directors

• Persons with Significant Control (PSCs)

• Members of Limited Liability Partnerships (LLPs)

• Anyone submitting documents to file at Companies House

• Applying to register as a Companies House authorised agent

This legislation applies to all entities registered with Companies House across England and Wales, Scotland, and Northern Ireland, including those filing on behalf of clients such as accountants, law firms and company formation agents. While verification is currently voluntary, it becomes mandatory in Autumn 2025.

To complete this essential verification process, there are two available pathways:

1. Directly through Companies House's newly implemented digital verification service, which requires users to provide a valid primary identity document such as a current passport or driving license for secure authentication.

2. Via an Authorised Corporate Service Provider (ACSP), who can conduct the verification process on behalf of the individual or entity.

What role do ACSPs play in the verification process?

An Authorised Corporate Service Provider (ACSP) is a professional or firm supervised in the UK for money laundering and plays a vital role in the new verification framework. These providers are also known as Companies House authorised agents.

To determine if your business needs ACSP registration, review the services you provide to clients. Registration will be mandatory if you offer services such as:

• Supporting companies, directors, and persons of significant control

• Submitting applications to register companies

• Filing confirmation statements

• Preparing annual accounts

• Notifying changes to company details (such as registered office address changes, director appointments or removals, and updates to director or PSC information)

People who file at Companies House are not required to verify their identity just yet but in future, it will be a legal requirement. 

Registered ACSPs play a crucial role in identity verification, acting as trusted intermediaries between businesses and Companies House. They are responsible for conducting ID verification checks and submitting accurate information, ensuring compliance with corporate registration standards.

The requirement for ACSPs to register and verify their own identities enhances oversight of company filings and representatives. This added layer of scrutiny allows Companies House to detect and act swiftly against suspicious activities, ultimately safeguarding legitimate businesses and the public.

These changes mark a significant shift in UK corporate governance and verification standards. ACSPs must adapt by updating their processes and systems while guiding clients through this evolving regulatory landscape. Early preparation and a strong understanding of these new requirements are key to maintaining compliance and operational efficiency.

Identity verification is a core pillar of the Economic Crime and Corporate Transparency Act, which mandates Companies House to verify the identity of everyone submitting information to the public register - including company representatives. By enforcing stricter ID checks, the Act improves data accuracy, enhances transparency, and strengthens collaboration with regulators and supervisory bodies through better information sharing.

Essential Compliance requirements for ACSPs

• Must be supervised under UK Anti-Money Laundering regulations

• Required to register with Companies House for a £55 fee

• ACSPs owe legal responsibilities to Companies House once registered:

  • Always be registered with at least one UK AML supervisory body

  • Tell Companies House about any changes to the authorised agent’s details within 14 days

  • Must provide more information about filings with Companies House if requested and records of any identity checks must be retained for 7 years if they have verified someone’s identity for Companies House.

Next steps for firms considering ACSP registration

• Thoroughly review and understand the upcoming changes to UK company law introduced by the Economic Crime and Corporate Transparency Act (including the estimated timelines).

• Understand the risks, submitting misleading or false information to the Registrar without reasonable excuse is a criminal offence, with harsher penalties for intentional violations. This may deter some firms from becoming ACSPs due to concerns about legal liability around the "reasonable excuse" interpretation.

• Review and update your identity verification processes to make sure your policies, controls and procedures carefully balance your professional obligations with these new legal requirements. 

• Confirm your UK Anti-Money Laundering regulation status and locate your membership number for registration.

• Register as an ACSP.

The changes represent the most significant update to Companies House since 1844, aiming to combat economic crime and improve corporate transparency. For all companies wishing to be ACSPs, implementing compliant verification processes early will be crucial for ensuring smooth compliance with these new requirements.