The UK is about to see its most significant reform to company law in almost 200 years. The Economic Crime and Corporate Transparency Act (2023) is transforming the role of Companies House, giving it stronger powers to prevent fraud, improve transparency, and create a register that businesses and the public can genuinely trust.
The first major requirement under this Act will arrive soon. From 18 November 2025, every company director and every person with significant control (PSC) must verify their identity with Companies House.
This will affect more than seven million people connected to UK companies, and identity verification is only the beginning. Further reforms will continue into 2026 and beyond.
Why the reforms are happening
For many years, starting a company in the UK has been quick and straightforward. While this made entrepreneurship easier, it also created risks. Fraudsters could create companies using stolen or fake identities and, in some cases, use them to launder money or carry out illegal activity.
The Act has been introduced to close these gaps. It aims to:
- Disrupt economic crime by making it harder for companies to be used as a front for unlawful activity.
- Improve transparency by ensuring Companies House data is accurate, reliable and trustworthy.
- Protect legitimate businesses so they can trade with confidence in who they are dealing with.
- Strengthen the UK economy and national security by making the UK a safer, more reliable place to do business.
This is the biggest reform to Companies House since its creation in 1844, and the impact will be felt by every UK company.
Identity verification: the immediate priority
The most urgent change is the introduction of identity verification.
From 18 November 2025:
- All new company directors and PSCs must verify their identity before they can be appointed or incorporated.
- Existing directors and PSCs will have 12 months to complete verification, linked to the company’s next confirmation statement (the annual filing where a company confirms its details are accurate and up to date).
- Once verified, each individual will receive a Companies House personal code – a secure identifier, unique to the individual, which links their identity to their company role. It will be required whenever they make filings, take on a new position, or update company records.
Who is a PSC?
A Person with Significant Control (PSC) is someone who ultimately owns or controls a company. This usually means:
- Holding more than 25% of shares or voting rights.
- Having the right to appoint or remove directors.
- Having significant influence or control over company decisions.
Every PSC will need to verify their identity and provide their personal code when completing company filings.
How can you verify?
Identity can be verified in two ways:
- Directly with Companies House – using GOV.UK One Login, either through an app, online security questions, or at a participating Post Office.
- Through an Authorised Corporate Service Provider (ACSP) – such as Nordens. An ACSP is a professional firm, like an accountant or solicitor, authorised under the UK’s Anti-Money Laundering (AML) regime to carry out checks on behalf of clients. Using an ACSP makes the process faster, more secure and ensures deadlines are met correctly.
What happens if you do not verify?
The consequences of failing to comply are serious:
- You will not be able to file company documents or make changes with Companies House.
- Acting as a director without verifying may be a criminal offence, carrying financial penalties or even disqualification.
- Your company’s ability to operate could be disrupted, damaging its reputation with banks, investors, and clients.
How can we help you?
At Nordens, we are already guiding businesses through these changes. As an Authorised Corporate Service Provider (ACSP), we can:
- Complete identity verification checks securely on your behalf – taking away the stress of navigating the new process and ensuring everything is handled correctly the first time. We will confirm your documents, complete the verification, and connect your personal code to your role.
- Ensure all deadlines are met to avoid penalties or disqualification – we track filing dates and verification windows, so you never risk missing them. This protects your company from costly fines, rejected filings, or even strike-off.
- Advise on the wider reforms as they come into effect – from new filing rules to accounts reform, our team will explain what applies to your business and help you prepare. Whether it’s adapting to software-only accounts, handling new shareholder disclosure, or understanding increased fees, we’ll keep you ahead of the changes.
This service is available for both clients and non-clients. Whether you are a director, PSC, or company secretary, Nordens can take care of the process and give you peace of mind.
Why you should act now
It’s important to note that you must confirm it before filing your next Confirmation Statement from 18 November 2025.
With millions of directors and PSCs needing to complete this process, early action is essential. Leaving it too late could prevent you from filing your Confirmation Statement on time, which could lead to your company being struck off.
Acting early means you’ll avoid unnecessary stress, protect your company’s good standing, and ensure there’s no disruption to your ability to operate or access banking and financial services.
Nordens can manage the process on your behalf, ensuring your verification is completed smoothly and your personal code is securely linked to your company record.
Other reforms you need to know about
Identity verification is only the start. The Act introduces a wide set of reforms being rolled out in stages between now and 2027.
1. Stronger checks on company information
- Companies House can now query and reject suspicious information filed in company records, rather than accepting it automatically.
- It has new powers to remove inaccurate or fraudulent details more quickly, including names and addresses that have been used without consent. In the past, removing this information often required a court order, but the process has now been streamlined.
- Company names will face tighter scrutiny. Any name designed to mislead the public, suggest a false connection to government, or facilitate fraud can be blocked.
2. Stricter rules on registered office addresses
- Every company must provide an appropriate registered address.
- PO Boxes and similar services will no longer be accepted.
- Companies that fail to provide a proper address may face strike-off proceedings if they do not correct the issue promptly.
3. Greater enforcement and data sharing
- Companies House can now share far more data with law enforcement agencies and regulators, strengthening the fight against fraud, money laundering, and other criminal activity.
- Its systems allow for greater cross-checking of information, comparing filings against other government and private datasets. This makes it easier to detect suspicious or inconsistent records.
- Since October 2024, Companies House has also had the power to issue financial penalties directly for certain offences, removing the need to always rely on prosecutions.
4. Restrictions on corporate directors
- A corporate director is a company that acts as a director of another company. Under the new rules:
- Corporate directors must have a board made up entirely of natural persons (individuals).
- Each of those directors must verify their identity before the corporate director can remain in place.
- Overseas companies will no longer be permitted to act as corporate directors in the UK.
5. Accounts reform (coming later)
- All accounts will eventually need to be filed using approved software only. Paper filings will no longer be accepted once the new systems are in place.
- Small companies will need to provide profit and loss accounts and a directors’ report. The option to file abridged accounts will be removed.
- Micro-entities, however, will not be required to file a directors’ report or profit and loss account.
To clarify the difference:
- Small companies are those meeting two of the following three conditions: turnover of £10.2 million or less, balance sheet total of £5.1 million or less, and 50 employees or fewer.
- Micro-entities are even smaller, meeting two of these three thresholds: turnover of £632,000 or less, balance sheet total of £316,000 or less, and 10 employees or fewer.
This distinction matters, as many smaller firms assume they fall under the same category. However, only small companies (not micro-entities) will see changes to what they must file.
- Companies claiming an audit exemption will need to file an enhanced directors’ statement on the balance sheet, confirming the exemption claimed and that the company is eligible.
- Limits will also be introduced on how often a company can shorten its accounting reference period.
6. Increased fees
- Since May 2024, Companies House has raised its incorporation and filing fees to help fund its new enforcement powers, investigative systems, and identity verification framework.
- These fees will continue to be reviewed annually to ensure they reflect the true cost of monitoring compliance and tackling fraud
What this means for your business
For directors and people with significant control, the reforms mean accountability is no longer optional. Verifying your identity and securing a Companies House personal code are not just compliance steps – they are the legal proof of who you are in connection with your company.
For day-to-day operations, the new rules will raise the bar on accuracy and timing. Companies House will be challenging filings more actively, and missed deadlines could block you from making changes or even risk your company being struck off. Good record-keeping and prompt action are now essential, as delays could directly impact your ability to trade or complete important transactions.
Financially and reputationally, businesses need to prepare for change. Higher fees and stricter filing requirements will increase the cost of compliance, while the shift to software-only accounts will demand new systems for many smaller firms. Yet the upside is significant – verified, transparent records make your company more credible with banks, investors and clients. Non-compliance, on the other hand, will be far more visible and could attract regulatory attention.
Final thoughts
The Companies House reforms mark a defining shift towards a more transparent and secure corporate landscape in the UK. While the changes may feel administrative, they represent a major step forward in protecting legitimate businesses and restoring public trust in the corporate register.
Whether you are a director of a growing SME, a start-up founder, or managing a well-established company, understanding and acting on these reforms early will keep your business compliant and resilient.
If you need help with verifying your identity at Companies House or want expert advice on how the reforms could affect you, contact Nordens today.
