Starting a New UK Company in 2026? Why You Can't Incorporate Without ID Verification First

If you're planning to set up a new UK company, identity verification is no longer something you deal with after incorporation — for anyone becoming a director or PSC on or after 18 November 2025, it's a precondition of the appointment itself. This article explains why the rule exists, exactly when it applies, and what founders need to do differently.

Why Companies House changed the rules

The identity verification regime exists under the Economic Crime and Corporate Transparency Act 2023, part of a deliberate shift in Companies House's own role. Companies House's Chief Executive and Registrar has described this shift as becoming "the trusted guardian of corporate transparency," moving from a body that simply registered whatever information it was given to one that actively checks who is behind a company (Companies House, January 2026). New incorporations are exactly where that shift is most visible: verification checks are now built into the front door of company formation, rather than bolted on afterwards.

The rule for new companies, precisely

Companies House's confirmed rollout structure states that new directors and PSCs — meaning anyone appointed or registered on or after 18 November 2025 — must verify their identity as part of that appointment or registration (GOV.UK). Unlike existing directors, who benefit from a 12-month transition period tied to their confirmation statement date, there is no grace period for a brand-new company or a brand-new appointment. If you're forming a company today, verification isn't a "when convenient" task — it sits on the incorporation timeline itself.

How to verify before or during incorporation

You have the same two routes available to any director or PSC:

• GOV.UK One Login — a self-service route using a biometric passport or other accepted UK identity documents, run directly by government.
• An Authorised Corporate Service Provider (ACSP) — a supervised firm, like TAH, that carries out the identity check on Companies House's behalf and can accept a wider range of supporting documents for people without a biometric passport.

For founders who are not UK residents, or who don't hold a biometric passport, this second route matters in practice: Companies House has confirmed an ACSP "can use a range of documents to verify your identity," where the self-service GOV.UK route may be more limited (Companies House).

Overseas founders and international directors

Setting up a UK company as a non-resident is common — and identity verification applies regardless of nationality or residency. Companies House has confirmed that anyone with a biometric passport from any country can use the GOV.UK One Login service directly; those without one, or who prefer document-based verification, can go through an ACSP instead. This is one of the more frequent reasons overseas founders choose an ACSP over the self-service route.

What's not yet covered by this requirement

It's worth knowing the current boundaries of the rule, because they'll shift. As things stand:

• There are currently no identity verification requirements for Relevant Legal Entities (RLEs) — i.e. corporate PSCs.
• There are currently no requirements if a PSC is itself a limited company rather than an individual.
• Requirements for limited partnerships, corporate directors, corporate LLP members, and officers of corporate PSCs are planned but not yet in force.
• Sole traders are not registered with Companies House at all and have no verification requirement under this regime.

Companies House has said that verification for people who file documents on the company's behalf — not just directors and PSCs — will be introduced "no earlier than November 2026," with advance notice given before it takes effect.

Practical advice for founders and their accountants

If you're incorporating a new company — particularly if you're doing so for a client, or forming several entities in a group structure — build identity verification into your incorporation checklist from day one, not as a follow-up task. Where multiple co-founders or investors are involved, each new director and each PSC crossing the 25% threshold needs their own separate verification; it isn't something one founder can complete on behalf of another.

Key takeaways

• Since 18 November 2025, new directors and PSCs must verify their identity as part of appointment or registration — there's no transition period for new roles.
• Founders can verify via GOV.UK One Login or through an ACSP; overseas founders without a biometric passport typically need the ACSP route.
• The rule reflects Companies House's shift toward actively verifying who controls a company, under the Economic Crime and Corporate Transparency Act 2023.
• RLEs, corporate PSCs, and sole traders currently sit outside this requirement, though further rules are expected.
• Each director and PSC verifies individually — no one can complete this step on behalf of a co-founder.