Imagine discovering that you are listed as a director of a company you have never heard of, or worse, you are the director of a business used for criminal activity. From 18th November 2025, Companies House will implement one of the most consequential reforms in recent years. Under the Economic Crime and Corporate Transparency Act 2023, every company director and every Person with Significant Control (PSC) must verify their identity before acting in that capacity.
While most commentary so far has focused on who needs to verify and how, the deeper story is about protection, protecting people from identity theft, misuse, and reputational harm, while strengthening the integrity of UK businesses.
Practical changes
The process for directors and PSCs will change fundamentally. New appointments must be verified before registration, and existing directors and PSCs will be required to complete verification by the date of their company’s next confirmation statement, within a 12-month transition period. Verification can be completed either through GOV.UK One Login or through an authorised corporate service provider, such as an accountant or solicitor.
Once verified, each individual will have a unique verified identity that serves as their secure identifier for all future filings. It will be an offence for an individual to act as a director, or for a company to permit an unverified individual to act, without verification once the new rules are in force. Together, these measures mark a shift from a passive registry to an active verification system, one that checks who people are, not just what they type.
How the reform protects individuals
For years, people have found themselves listed as directors of companies they had never heard of. Fraudsters could simply type in a name and file it. The new system stops identity theft before it starts by ensuring that every appointment is tied to a verified identity, confirmed through secure government channels. It prevents criminals from registering fake companies under someone else’s name or using an address to lend legitimacy to fraud.
The reforms also build trust in public records. The Companies House register shapes perceptions among banks, clients, and regulators. With verified identities, the names listed will correspond to real, consenting individuals, making each professional record more credible and resistant to impersonation or error.
Verification also puts individuals in control of their corporate identity. A director’s verified identity becomes the key to their official record, ensuring that no one can appoint them to a company or amend their details without consent. This change gives individuals confidence that their name cannot be used behind the scenes without their knowledge.
Another important aspect is protection from unwanted liability. Under the old system, it was possible for people to be framed as company officers, attracting tax demands, debt notices, or legal correspondence they did not deserve. The verification process closes that loophole, meaning individuals can no longer be held accountable for companies they never agreed to join.
How the reform protects personal information
These reforms don’t just verify who people are; they also reduce how much of their personal information is exposed. Verification relies on secure digital checks using documents such as a passport or driving licence, but those documents are not stored or made public. Companies House will retain only the minimum information needed to maintain an accurate register, ensuring that identification data never appears online or remains in long-term storage.
Only verified individuals and authorised agents will be allowed to file or amend details, which means a person’s name cannot be added, edited, or reused without their verified code. This creates a built-in safeguard against unauthorised or malicious submissions.
Another major improvement is that one verification replaces repeated exposure.
Previously, directors had to send ID documents multiple times for different incorporations or filings. Now, verification will typically happen once, using GOV.UK One Login or an authorised provider, after which the secure status can be reused. This reduces the number of data copies in circulation and lowers the risk of breaches or leaks.
Each submission to Companies House will now link to a verified individual or regulated service provider, creating a robust digital audit trail. If someone misuses another person’s information, it can be traced, making transparency itself a deterrent and ensuring that misuse becomes both detectable and punishable.
Companies House will also have stronger powers to remove false or outdated information and to suppress entries that pose a risk. Errors and outdated data can therefore be corrected more quickly, reducing long-term exposure. This aligns the new model with key data-protection principles, data minimisation, purpose limitation, and confidentiality, ensuring that corporate transparency finally coexists with personal privacy, something the UK register has long lacked.
Transparency, trust, and accountability
Every verified record will still be public, but every identity will be real, consent-based, and better protected. In a time when trust is fragile and information spreads instantly, this is not a minor upgrade. A verified register strengthens the system as a whole. It raises the bar for everyone, making it harder to create shell companies, curbing money-laundering, delivering better transparency, reinforcing accountability, and restoring trust. The reforms will help create a cleaner and more trustworthy business environment for all.
Information security, risk management, internal audit, and governance professional with over 25 years of post-graduate experience gained across a diverse range of private and public sector projects in banking, insurance, telecommunications, health services, charities and more, both in the UK and internationally – MORE