Director ID verification coming in November 2025 – even for dormant companies!

From 18 November 2025, a big change is coming thanks to the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This is the same law that’s been making headlines for its crackdown on dodgy business practices.

One key part of it is this: All company directors and people with significant control (PSCs) will be legally required to verify their identity.

Yes, that includes you… even if your company is dormant. Your company might be dormant, but compliance never sleeps.

What’s this all about?

The UK government is trying to make it harder for fraudsters, money launderers, and other less-than-honest folk to hide behind anonymous companies. For years, Companies House records have been largely based on self-declared information — which means if you wanted to register a company for “Totally Legit Business Ltd” with a fake name, you could.

From 18 November 2025, you won’t be able to be (or remain) a company director, or a PSC, unless your identity has been verified. In plain English: Companies House needs to know you are who you say you are.

What counts as identity verification?

Full details on the verification process are still being finalised, but we do know this:

• It will be an online process (no need to queue outside Companies House in Cardiff!).

• You’ll provide proof of who you are — most likely using a passport, driving licence, or other official documents.

• The goal is to make it quick, secure, and one-off — once you’re verified, you shouldn’t need to do it again unless your details change.

Who needs to do it?

If you’re any of the following, you’ll need to verify your ID:

• Company directors (for both trading and dormant companies)

• People with significant control (PSCs) — this generally means you own or control more than 25% of the company’s shares or voting rights, or have the right to appoint/remove directors

• Relevant officers of certain entities

Dormant company directors, take note: Just because your company is sleeping doesn’t mean you get to snooze through this change. The law applies to all directors, active or not.

Why does this matter for dormant companies?

It’s easy to think: “Well, my company doesn’t trade, so I can just ignore this.” Not this time. Here’s why:

1. Being a director is still a legal role – Even if your company has no transactions, you still have legal responsibilities under the Companies Act 2006.

2. Non-compliance could mean serious consequences – If you don’t verify your ID, you might not be able to act as a director. Your company could also be prevented from filing certain documents.

3. Annual filings won’t be accepted – That includes your annual confirmation statement and dormant accounts. Without ID verification, you could face late filing penalties or even strike-off.

4. Companies House records will change – Once this is in place, the public register will show whether a director or PSC is “verified”. That means transparency for all — and it’ll be obvious if you haven’t done it.

   
   

What happens if you don’t verify?

While the exact enforcement measures are still being clarified, the law allows for:

• Directors to be banned from acting if they fail to verify

• Companies being unable to make filings

• Potential criminal penalties for deliberate non-compliance

So, best not to wait until the last minute.

What should dormant company directors do now?

We’ve still got more than a year until the rule kicks in, but preparation now will make life easier later. Here’s your simple action plan:

1. Make sure your Companies House records are up to date

   • Check your registered address, date of birth, and other details are correct.

   • Update any PSC information if needed.

2. Get your ID documents ready

   • If your passport or driving licence is expired, renew it well ahead of time.

3. Don’t ignore emails or letters or updates from Companies House

   • They’ll let you know when it’s time to verify.

   
   

How this fits in with your dormant company obligations

Right now, as the director of a dormant company, your main jobs are to:

• File dormant company accounts

• File an annual confirmation statement

• Keep company details up to date

From 18 November 2025, you’ll need to add ID verification to that list and for your dormant company it will most likely look like this:

• Confirmation statement = Yes, our details are still the same

• Dormant accounts = Yes, we’re still sleeping

• ID verification = Yes, I’m a real human and I’m allowed to be here

Quick FAQ for dormant company directors

Q: My company has been dormant for years. Do I still need to verify my ID?

A: Yes — being dormant doesn’t exempt you.

Q: What if I’m the only director and PSC?

A: You’ll need to verify once, but that covers both roles.

Q: Will this cost anything?

A: The government hasn’t confirmed, but it’s expected to be free or a minimal cost.

Q: What if I live overseas?

A: You’ll still need to verify online — there should be an option for overseas directors.

Our service

Here at Just Dormant Accounts, we provide the online software for you to file dormant accounts for your company. But it doesn't do confirmation statements - so you will need to file that through your Companies House account.