Mandatory identity verification for UK companies goes live

The UK is cracking down on businesses that appoint directors using fake or stolen identities and cleaning up its reputation as a haven for corporate fraud. On Tuesday, the government-operated company registry Companies House plans to introduce mandatory identity verification for company directors and people with significant control (PSCs).

The new requirement is designed to provide more assurance about who is setting up, running, owning and controlling companies in the UK, says the organization. It is also aimed at cutting down on economic crime and strengthening anti-money laundering (AML) controls.

“The measures will significantly reduce the ease criminals can create shell companies to facilitate financial crime, including money laundering,” says Gus Tomlinson, chief technology and product officer at identity verification provider GBG.

The introduction of verified identities and Know Your Business (KYB) standards will also be a boon for digital ecosystems, he adds.

The new measure could lead to a noticeable decline in the number of registered directors and controlling parties. Authorities are also likely to see a rise in attempts to circumvent the identification requirement, including by formally appointing proxy directors, which allow the real company controllers to hide their identities.

People are currently being paid just £500 (US$658) to become a “ghost director” of a company, financial fraud expert Graham Barrow told The Times.

“There has already been a significant increase in British proxy directors being paid to front what are actually overseas-controlled companies,” he says.

In total, between six and seven million individuals are expected to verify their identity by mid-November 2026. Companies House launched its identity verification service voluntarily in April, with more than 1.5 million individuals completing the process already.

Company owners will be required to register directly with Companies House through an Authorised Corporate Service Provider (ACSP) or the GOV.UK One Login digital ID platform, which relies on technology from iProov and its subcontractors Veriff and Inverid. ID verification with One Login is free, and Companies House says most people will only need to complete verification once.

The new identity verification requirement will be introduced gradually over 12 months to prevent hiccups. Despite this, concerns about the use of One Login are already rising. The platform has been described by the business community as “confusing, clunky and occasionally unreliable.”

“It’s clear smoother navigation and clearer guidance will be key to ensuring the system works effectively for businesses of all sizes,” a spokesperson for the Institute of Directors (IoD) explains for news outlet ThisIsMoney.co.uk.

The government seems to be paying attention to these claims. In October, the Government Digital Service (GDS) launched a market engagement exercise for the potential procurement for an identity fraud checks service for GOV.UK One Login. The exercise is aimed at refining requirements and exploring solutions, the agency says in its tender.

The government is also exploring more ways to verify the identity of business owners. The London-based Centre for Finance, Innovation and Technology (CFIT) has been developing a prototype of the Digital Company ID. Dozens of organizations have joined the effort, including biometric technology providers such as Daon, Yoti and OneID.

Research commissioned by CFIT has found that more than 80 percent of small and medium-sized enterprises in the UK would not mind paying for a Digital Company ID.

Article Topics

Companies House  |  digital company ID  |  digital identity  |  GBG  |  Gov.UK  |  identity verification  |  One Login  |  UK digital ID