The deadline for Companies House identity verification is fast approaching. The requirement for company directors and people with significant control (PSCs) took effect on 18 November 2025, and the 12-month transition period is nearing its end. Around 7 million individuals still need to verify their identity before the November 2026 deadline.
Introduced as part of the reforms under the Economic Crime and Corporate Transparency Act 2023, the new requirement changes how directors and PSCs are verified and strengthens the checks behind the Companies House register.
The aim is straightforward: to provide greater assurance about who sets up, runs, and controls UK companies, while improving the reliability of information held on the public register.
So, what does identity verification mean for businesses that carry out company checks—and what information should you look at alongside Companies House?
Identity verification is the process through which Companies House confirms that an individual is who they claim to be.
It applies to company directors and people with significant control (PSCs). New directors must verify their identity before Companies House can register their appointment, while existing directors will provide their Companies House personal code when filing their next confirmation statement during the transition period. PSCs have their own verification requirements and a 14-day period to provide their personal code.
You may share the personal code with trusted individuals filing on your behalf, but you should keep it secure.
The wider objective is to make the register harder to misuse and provide greater confidence in the identity of the people behind UK companies.
Businesses use Companies House information daily to check potential customers, suppliers, and commercial partners. But knowing that a company exists is only the starting point.
When deciding whether to offer credit or enter a new trading relationship, businesses also need to understand who is behind the company, its financial position, and whether anything has changed that could affect the risk involved.
Identity verification strengthens the first part of that picture. It provides greater assurance that the individuals recorded as directors or PSCs are genuine.
However, it doesn't tell you whether a company is financially healthy, whether it pays its suppliers on time or whether it represents an appropriate level of credit risk.
That is where additional company and director checks can provide valuable context.
A company's registered details only tell part of the story.
Reviewing the directors and PSCs can provide useful additional information when assessing an unfamiliar business, particularly if a company is newly established, has a limited trading history, or the people behind it have previously been involved with other businesses.
CoCredo’s Director Check search can complement company credit reports to give businesses a broader view of a potential trading relationship.
This is particularly relevant when making a credit decision. For example, a company may be newly incorporated, but its directors may have an established business history. Equally, changes involving directors or ownership may provide useful context when reviewing an existing customer.
Companies House identity verification helps establish: “Is this person who they say they are?”
A director check can provide additional context around: “What do we know about this individual's business history?”
Neither replaces a company credit assessment. Together, however, they can contribute to a more informed view of the people and businesses involved in a commercial relationship.
For credit teams and business owners, bringing these different sources of information together can support better-informed decisions — not just when a new relationship begins, but throughout its lifetime.
A company's risk profile can change after the initial credit decision.
Directors can change. Ownership can change. A company can experience deteriorating payment behaviour, receive a court judgment, restructure its corporate group or encounter financial difficulties.
That means information gathered at the start of a relationship can become outdated.
Regular monitoring helps businesses spot significant changes and reassess relationships when needed.
This is especially important for businesses with large customer or supplier portfolios, where manually checking every company regularly simply isn't practical.
The introduction of identity verification is a useful opportunity to review how your business assesses new and existing commercial relationships.
Consider whether your current process:
The aim isn't to create unnecessary additional checks. It ensures the information used to make a commercial decision reflects the company, the people behind it, and its current position.
What is Companies House identity verification?
It confirms the identity of individuals associated with UK companies, including directors and people with significant control (PSCs).
When did Companies House identity verification become mandatory?
Mandatory identity verification began on 18 November 2025. The requirement is being phased in over a 12-month transition period for existing directors and PSCs.
Do existing directors need to verify their identity?
Yes. During the transition period, existing directors must verify their identity and provide their personal code when filing the company's next confirmation statement.
Does identity verification replace a company credit check?
No. Identity verification establishes an individual's identity. A company credit check provides information relevant to the financial and commercial risk of doing business with that company.
Why should businesses check company directors?
Director information can provide additional context about the people behind a business and their business history. This can be useful when assessing new or existing commercial relationships.
Does Companies House identity verification mean a company is low risk?
No. Verification confirms an individual's identity; it does not assess the company's financial health or creditworthiness.
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