Understanding identity verification for people with significant control (PSCs)

Understanding Identity Verification for People with Significant Control (PSCs)

As part of the UK government’s ongoing reforms to improve corporate transparency and tackle economic crime, Companies House is introducing identity verification requirements for key individuals connected to UK companies. One group affected by these changes is People with Significant Control (PSCs).

If you are a company owner, director, or PSC, it’s important to understand what this means and how to stay compliant.

What is a Person with Significant Control (PSC)?

A PSC is an individual who has significant influence or control over a company. This usually includes anyone who:

• Owns more than 25% of the company’s shares
• Holds more than 25% of the voting rights
• Has the right to appoint or remove the majority of directors
• Otherwise exercises significant influence or control over the company

Most owner-managed businesses will have at least one PSC.

What is Identity Verification?

Identity verification is a new requirement being introduced under the Economic Crime and Corporate Transparency Act. Its purpose is to ensure that the people running and controlling UK companies are who they say they are.

Under these rules, PSCs will need to verify their identity with Companies House before they can be recorded on the public register.

How Will PSCs Verify Their Identity?

PSCs will be able to verify their identity in one of two ways:

1. Directly with Companies House
   This will be done online using an approved form of photographic identification, such as a passport or driving licence.
2. Through an Authorised Corporate Service Provider (ACSP)
   This includes regulated professionals such as accountants or company formation agents who are authorised to carry out identity checks.

Once verified, the individual will receive a unique identifier that can be used for Companies House filings.

When Does This Apply?

The identity verification process will be phased in. Existing PSCs will be required to verify their identity during a transition period, while new PSCs will need to complete verification at the point of appointment or registration.

Failure to comply could result in:

• Filings being rejected
• Delays in company updates
• Potential financial penalties

Why This Matters for Your Business

These changes place additional responsibility on company owners and those in control. Ensuring identity verification is completed correctly and on time will help you:

• Avoid compliance issues
• Keep your Companies House records accurate
• Reduce the risk of penalties or enforcement action

How We Can Help

As a local accountancy firm in Horwich, we support small businesses with Companies House compliance, statutory filings, and ongoing advisory services. If you are unsure whether you are affected by these changes or would like help navigating the identity verification process, we are happy to assist.