The UK company law is changing, and one of the most significant updates is the introduction of mandatory identity verification for anyone involved in running a company — including CIC directors, company secretaries, and PSCs (people with significant control).
For social enterprises and charities structured as companies, this isn’t just a bureaucratic step — failing to complete identity verification will mean you can’t legally act in your role.
What's Changing
The Economic Crime and Corporate Transparency Act is introducing a new requirement that:
All company directors must verify their identity with Companies House.
People with significant control (PSCs) must also verify their identity.
New companies won’t be able to incorporate until all proposed directors are verified.
Existing companies will have a deadline to get their directors verified or risk penalties.
This applies to:
CIC directors
Directors of charitable companies
Company secretaries (in some cases)
PSCs, even if they’re not on the board
How Identity Verification Will Work
There will be two main ways to verify:
Direct verification with Companies House – most people will use the new online service and upload a form of photo ID (like a passport or driving licence).
Verification through an Authorised Agent (ACSP) – such as an accountant or company formation agent (Accounting for Good will be registered as an ACSP and able to complete verification on behalf of our clients).
Each verified person will be issued with a unique identity number, which will be linked to all companies they are involved in.
When Will This Happen?
he new identity verification system is being rolled out in stages, but the key date you need to know is 18 November 2025. That’s when the rules become mandatory for the first time.
Here’s the timeline:
From April 2025 – Voluntary verification opens: Directors and PSCs can start verifying their identity early through the new Companies House portal or an Authorised Corporate Service Provider (ACSP).
From 18 November 2025 – Mandatory verification begins: Any new company directors or PSCs appointed on or after this date must verify their identity before incorporation or appointment.
By 18 November 2026 – Existing directors and PSCs must complete verification: Anyone already in post before the changes come in has up to 12 months after 18 November 2025 to complete the process (often linked to the next confirmation statement).
Failing to verify by the deadline means you will not legally be able to act as a director, and your company could face fines or be annotated as non-compliant on the public register.
What Happens If You Don't Verify?
You won’t be legally allowed to act as a director.
Your company could face fines or legal action.
Companies House could annotate your public record to say the company is in breach.
In serious cases, the company could be struck off.
What This Means for Charities and CICs
This change is designed to tackle fraud and improve corporate transparency — but it could catch out well-intentioned small organisations if they don’t act in time.
Many volunteer directors or trustees may not be familiar with ID verification.
Some people with lived experience of disability or disadvantage may lack photo ID — so this needs planning ahead.
Organisations should include identity verification in trustee/director induction from now on.
Final Thoughts
This is one of the biggest changes to company law in decades. It’s designed to improve trust and transparency — but only if organisations are ready for it. Don’t wait until the deadline. Start preparing now, and build verification into how you onboard new directors and trustees from the start.