ACSPs’ Impact on UK Corporate Governance

Starting on April 8, 2025, company directors and people with significant control (PSCs) in the UK have the option to confirm their identification with Companies House. Verification will become required in the second part of the year, causing a major change in UK corporate governance.

Authorized Corporate Service Providers (ACSPs), whose job is to assist businesses with the verification process and guarantee adherence to the new regulatory standards, are being registered by Companies House in anticipation of these new obligations.

An ACSP: What is it?

Individuals or organizations authorized by Companies House to offer identity verification services are referred to as ACSPs or Companies House authorized agents. To be eligible, they must be headquartered in the UK and overseen by one of the 25 Anti-Money Laundering (AML) regulatory organizations in the country. By spring 2026, all third-party agents who provide data on behalf of businesses must be ACSPs.

Future modifications to the identification verification process for PSCs and company directors

In the UK, it will soon be necessary for everyone starting, running, owning, or controlling a business to provide identification. This will be done in stages to assist businesses with the transition. Important dates to remember are as follows:

You can voluntarily confirm your identification on April 8, 2025

As of April 8, 2025, company directors and PSCs will be able to freely confirm their identities with Companies House. PSCs are distinguished by factors like possessing a majority of the board of directors’ appointment or removal authority or more than 25% of the voting rights.

Presenting official documents, like a UK driver’s license or biometric passport, and comparing them to the applicant is the verification process. This can be accomplished by:

• An ACSP
• UK One Login online service
• In person at a Post Office

Directors and PSCs can get verified early during this voluntary period and resolve any problems before verification becomes required. Those who confirm will receive a special Companies House personal code for upcoming filings.

Fall 2025: New hires must provide identification for new positions

In the UK, identification verification will be required for new PSCs and business directors starting in the second half of 2025. This means that the company director’s or PSC’s identity must be confirmed as part of the appointment procedure when a new company is incorporated or when a director or PSC of an existing business is appointed.

Companies House will not finish the incorporation or accept the appointment filing until the individual’s identification has been confirmed.

Transitional era for current PSCs and corporate directors, 2025–2026

If they haven’t already, current PSCs and business directors will have a 12-month window from the fall of 2025 to the fall of 2026 to confirm their identities. The verification can be finished concurrently with filing the company’s yearly confirmation statement.

Failure to comply will be considered a violation that may lead to monetary fines, the inability to file statutory documents, the denial of new company registrations, or even the firm’s strike-off.

How ACSPs support corporate governance in the UK

The changes introduced in the Economic Crime and Corporate Transparency Act 2023 are part of the UK’s efforts to prevent corporate fraud and increase the accuracy of information on the Companies House register. This represents a significant step forward for corporate governance in the UK.

Once fully implemented, identity verification will be a permanent requirement for UK companies. This ensures that those in positions of company authority are correctly identified, making it more difficult for bad actors to use fake or stolen identities to establish fraudulent companies.

The ACSPs themselves are subject to strict behavioural guidelines. They are tasked with carrying out stringent identification checks that adhere to the same confidence level as the government’s verification procedures since they are trusted go-betweens for companies and regulatory agencies.

Companies House has said unequivocally that an ACSP’s authorization may be revoked if it does not fulfil its responsibilities, such as losing its AML supervision status or performing checks improperly. If an ACSP is disqualified, public notices will also be published.

The ACSPs themselves are subject to strict behavioural guidelines. They are tasked with carrying out stringent identification checks that adhere to the same confidence level as the government’s verification procedures since they are trusted go-betweens for companies and regulatory agencies.

Companies House has said unequivocally that an ACSP’s authorization may be revoked if it does not fulfill its responsibilities, such as losing its AML supervision status or performing checks improperly. In the event that an ACSP is disqualified, public notices will also be published.

Because each director must provide identification and each agent is held responsible, these procedures are intended to boost confidence in UK businesses domestically and abroad. Because the corporate environment is more secure and transparent, foreign investors can feel more confident about launching a firm in the UK.

If you have any questions regarding how these changes impact you or how to proceed with verification, please do not hesitate to contact us.