The Big Change Ahead: UK Directors and the New Digital ID Rules

The UK’s Transition to Digital ID Verification for Companies House

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What Has Already Changed

The United Kingdom is entering one of the most significant phases of corporate reform in decades. Through the Economic Crime and Corporate Transparency Act, Companies House is moving from a passive registry to an active regulator with stronger powers, enhanced scrutiny, and new compliance requirements. The most meaningful change for directors and business owners is the introduction of mandatory Digital ID verification. This development, alongside new filing and address obligations, will reshape how every UK company is managed and how information is submitted.

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At HPT Group, we aim to ensure our clients understand the nature of these reforms, what timelines apply, and how to transition smoothly without disruption.

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Several new rules came into force in March 2024, laying the groundwork for the wider reforms ahead. Every UK company must now provide a registered email address for official correspondence, confirm as part of the annual confirmation statement that its business activities are lawful, and maintain a compliant registered office address where official mail can be properly received and acknowledged.

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Companies House now has strengthened authority to question suspicious filings, remove inaccurate or false information, and take enforcement action when appropriate. These changes signal a shift toward greater accountability and transparency in the corporate environment.

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The Introduction of Digital ID Verification

Beginning on 18 November 2025, identity verification will become mandatory for all directors, shadow directors, people with significant control, members of LLPs, and anyone filing information on behalf of a company. This requirement is intended to reduce fraud, improve corporate integrity, and ensure that only verified individuals can influence the management or ownership of UK entities.

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How Verification Will Be Completed

There will be two methods for completing identity checks. Individuals may verify directly through Companies House using the government’s digital system, which involves scanning a valid photo ID and completing a brief facial recognition process. Once verified, individuals will receive a personal code linking their identity to any roles they hold at Companies House.

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Alternatively, verification may be completed through an Authorised Corporate Service Provider. This route is typically more efficient, especially for clients with complex corporate structures, international directors, or ongoing administrative needs. HPT Group will be able to complete this process on behalf of clients.

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Timelines and Compliance Deadlines

A voluntary verification phase begins in April 2025, giving companies time to complete their checks ahead of the mandatory deadline. From 18 November 2025, all new directors and people with significant control must verify before incorporation or appointment.

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Existing directors and PSCs will have a transition window of twelve months, which aligns with each company’s next confirmation statement date. In effect, the verification cycle will run through late 2026. Failing to complete verification within the required timeframe may lead to penalties, disqualification, or rejection of filings.

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Preparing for the Transition

Companies should begin preparing now. Identifying everyone who must verify is essential, particularly when directors or PSCs are overseas or hold multiple roles across group entities. Choosing whether to complete verification directly or through HPT Group is another key decision. Reviewing registered addresses, lawful purpose statements, and contact details will also ensure compliance with the new requirements.

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For international directors, preparation is especially important, as verification may take longer due to documentation and identity checks conducted outside the UK.

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What Directors Should Expect

After the transition period, no incorporation or director appointment will be possible without verified identity. Annual filings and statutory updates will also be blocked if verification has not been completed. Companies House will have expanded authority to challenge or remove information that appears incomplete or inaccurate, placing greater emphasis on precise record keeping and transparent reporting.

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How HPT Group Supports Your Compliance

HPT Group is assisting clients as they adapt to this new regulatory landscape. Our team can review your company structure to confirm who must verify, create a tailored timeline based on your filing dates, and manage the entire Digital ID verification process through our Authorised Corporate Service Provider capability. Our goal is to ensure your company remains compliant, efficient, and fully prepared for the coming changes.

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