The Companies House Identity Verification Challenge: What UK Boards Need to Know

The most sweeping reform to Companies House since its inception in 1844 is now in full swing. The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduces a new era of transparency and accountability for every UK company, large and small. While the Act tackles a broad range of issues, one of the most immediate and critical challenges facing boards is the new mandatory identity verification regime.

For company secretaries, directors, and governance professionals, this isn't just a simple box-ticking exercise; it’s a fundamental shift in how directorship and ownership are managed. Failure to comply can lead to serious consequences, including fines, criminal offences, and disqualification.

The sheer scale of this change presents a significant administrative challenge. Companies House estimates that up to 7 million individuals will need to verify their identity. But for forward-thinking organisations, this is an opportunity to move from reactive compliance to proactive governance. This article will explain the ECCTA's new requirements and demonstrate how a modern board portal can act as a single, centralised solution to streamline director compliance.

The ECCTA's Timeline and Key Requirements

The ECCTA’s identity verification requirements are designed to prevent the use of UK companies for illicit purposes by ensuring that anyone on the register is who they say they are. While voluntary verification began in April 2025, the mandatory phase is fast approaching.

From 18 November 2025, identity verification will become a compulsory requirement for:

  • All new and existing company directors.

  • Persons with Significant Control (PSCs).

  • Members of a Limited Liability Partnership (LLP).

This isn't a one-off event. New directors must be verified before their appointment is filed at Companies House. For existing directors, there is a 12-month transition period from the mandatory date, often triggered by the company’s next confirmation statement.

The Consequences of Non-Compliance

The stakes are high. Companies House now has enhanced powers to scrutinise, reject filings, and penalise non-compliance. Acting as a director without having a verified identity will become a criminal offence, exposing both the individual and the company to penalties, which can include unlimited fines and the risk of disqualification. For busy directors juggling multiple roles and responsibilities, this added layer of personal risk can be a cause for significant concern.

The key challenge lies in the sheer volume of data and the need for a secure, streamlined process. Boards, particularly those of larger organisations with numerous directors and complex structures, face a daunting administrative task.

How a Board Portal Streamlines ECCTA Compliance

A modern board portal is more than just a digital meeting pack. It is an end-to-end governance platform that can be a strategic asset in managing the ECCTA’s compliance burden. Instead of handling sensitive personal data over insecure email or relying on manual, disparate processes, a board portal provides a secure, centralised, and auditable solution.

Centralised Director Information & Auditable Records

Managing director information across multiple platforms, spreadsheets, and physical files is inefficient and risky. A board portal provides a secure, single source of truth for all director data.

  • Secure Data Collection: Directors can securely upload their identity documents and personal codes to a dedicated, encrypted profile within the portal. This eliminates the need for email and reduces the risk of data breaches.

  • Centralised Director Register: With Companies House taking over the role of central registrar, companies are no longer required to maintain their own statutory registers. However, for good governance, most will choose to continue doing so. A board portal automates this process, providing a live, accurate, and easily auditable record of all directors, their status, and their ECCTA compliance.

  • Robust Audit Trails: Every action within the portal—from a director uploading a document to a company secretary accessing their profile—is time-stamped and logged. This creates an impeccable audit trail that can be easily presented to regulators or auditors, demonstrating due diligence and a proactive approach to compliance.

Simplifying Identity Verification for Directors

The ECCTA offers two routes for identity verification: direct with Companies House or indirectly through an Authorised Corporate Service Provider (ACSP). The indirect route is often a more convenient and efficient option, especially for non-UK resident directors. A board portal can be an invaluable tool for both processes.

  • Facilitating the ACSP Route: Many board portals integrate with or are managed by governance professionals who act as ACSPs. They can guide directors through the verification process and ensure the data meets the required standards. The portal serves as the secure channel for this interaction, with a clear chain of custody for all information.

  • Streamlining the Process for Directors: For a director with multiple directorships, having a single, verified personal code is a massive time-saver. The portal can be used to store this unique code securely and provide easy access when it is needed for filings with Companies House, eliminating the risk of it being lost or compromised.

  • Automated Reminders: Board portals can be configured to send automated reminders to directors whose ECCTA compliance status is pending or approaching a deadline. This ensures no one slips through the cracks and helps the company secretary to manage the process for the entire board proactively.

Enhancing Board Oversight and Risk Management

The ECCTA also brings enhanced powers to Companies House, including a new failure to prevent fraud offence for large organisations. This makes the board's role in proactive risk management more critical than ever. A board portal supports this by providing a unified governance framework.

  • Integrated Governance: By centralising all governance information—from director profiles and committee minutes to policy documents and risk registers—a board portal provides a holistic view of the company’s governance health. The board can see how identity verification is just one part of a wider, robust compliance framework.

  • Risk Mitigation: Having a secure and auditable system for managing personal data and filing information is a key component of a company's anti-fraud procedures. It directly demonstrates that the board has taken “reasonable steps” to prevent economic crime, a crucial defence against the new offence.

  • Confidence for Directors: When directors know their personal data is being handled securely and that the company has a robust system in place to manage compliance, it builds confidence. This allows them to focus on their core duties: strategy, performance, and oversight, without the distraction of administrative compliance worries.

The ECCTA represents a significant step towards a more transparent and trustworthy UK business environment. While the new identity verification requirements may seem like another administrative burden, they are a vital move to protect the integrity of the Companies House register.

For modern boards, the best way to meet this challenge is not to react but to prepare. By adopting a secure, feature-rich board portal, UK organisations can turn a complex regulatory mandate into a strategic opportunity. They can streamline a daunting process, fortify their governance framework, and provide their directors with the tools and peace of mind they need to lead with confidence.