Proof of ID requirements for company formation

When forming a limited company in the UK, you may be subject to a proof of ID check depending on how you register. If you register directly via Companies House, there are currently no ID regulations in place.

However, the Economic Crime and Corporate Transparency Act 2023 (ECCTA) is changing that. The law requires all directors and People with Significant Control to undergo proof of ID checks during the company formation stage.

Although this legislation is yet to be fully implemented, at 1st Formations, we ask all people holding an interest greater than 25% in the company, as well as the point of contact for the account, to undergo an ID check. That’s because, as company formation agents, we are supervised by the UK Money Laundering Regulations, London Local Authorities Act 2007, and Know Your Customer (KYC) guidelines.

Below, we’ll explain which types of ID we may ask you to provide when registering a company through us.

Types of ID and who needs to supply them

When you submit your company registration application to 1st Formations, our Compliance Team receives and reviews your information. First, they run a digital ID check—no ID is required at this stage; they simply check the details of the shareholders (holding greater than 25% of the shares), the people with significant control (PSC), and the account holder(s) provided in the online form.

If you’re a non-UK resident or the check fails, we will ask you to supply your ID so that we can run a more detailed check and verify your identity. For this, you’ll need to provide: 

• An in-date government-issued photo ID, such as a passport or driving license (we recommend passports); and 

• Proof of address, such as a bank statement or utility bill (dated within the last three months and addressed to the individual in question) 

Please note that bank statements must show at least three months of transactions. Also, if the proof of address document is a paper copy, we will require a photo of the document. If the document is digital, we will need a downloaded version. 

Anyone who purchases our additional services, like the service address or business address package, will also be subject to proof of ID checks. This includes all company directors, the account holder, and PSCs.

Non-UK residents

When forming a company through 1st Formations, all non-UK residents must provide proof of ID and address. We accept passports and national ID cards.

We may also ask you to provide additional documents, such as certificates of residence, depending on your country of residence.

How we run proof of ID checks

If we need to ask for ID, we’ll let you know who we need it from. We use a secure online system called CREDAS to run our poof of ID checks. Don’t worry if we ask you to complete a CREDAS check; it only takes five minutes to complete via a simple app and won’t cost you anything.

• What happens after I submit my company formation application?
• How we can help you on your company formation journey
• How to register a company in 4 simple steps with 1st Formations

You’ll receive an email invitation from our ID team with detailed instructions on completing your ID verification through the CREDAS app. Once you’ve done this, we will begin drafting your work and let you know if there are any issues with your submissions.

Common reasons why ID checks fail

In some instances, the initial digital ID check could fail. The main reasons for this are: 

1. Incorrect personal details entered—people often provide a business address instead of their home address 
2. Recently moved home—If you have a new residential address, the digital footprint may not have fully updated to the new address yet 
3. You are not on the electoral register 

Please double-check the information you enter into the company registration form to ensure you pass the digital ID verification, which will allow us to process your application without delay.

There are a few reasons why a CREDAS ID verification could fail, too, including: 

1. The image of the ID is unclear (e.g. it’s blurry or contains shadows, light reflections, etc.) 
2. Failure to upload both the front and back of the proof of ID 
3. We may not support the jurisdiction of the ID issue (these include Iran, Iraq, DPRK, and Syria) 

Again, to avoid processing delays, please submit a crystal clear image of the front and back of your ID from an approved jurisdiction. Here is an example of what you should and shouldn’t submit:

If you fail either of these ID check stages, don’t worry; it will not affect your credit rating. We will update you throughout the application process and let you know if we need more information before submitting your company registration request to Companies House.

How proof of ID checks will work at Companies House

Companies House currently expects to make identity verification compulsory for all incorporations through Companies House by autumn 2025. With identity theft on the rise, affecting around one in 10 people, there is an urgency to bring these regulations into force as soon as possible.

Implementing these requirements for corporate transparency is crucial, helping keep the register correct and accurate. Once they are in place, all directors and PSCs within new companies at Companies House will need to complete ID verification.

These new regulations will also apply to existing companies. All directors and PSCs in existing companies will be asked to verify their identity during a 12-month transition period. Additionally, anyone acting on behalf of companies will need to verify their identity before filing information with the registrar.

There will be two ways to complete these proof of ID checks:  

1. Directly with Companies House
2. Through an Authorised Corporate Service Provider (ACSP) 

Please note that once the legislation is in place, you will be legally obligated, as a director, PSC, or an authorised person acting on behalf of a company, to complete these proof of ID verifications. Failure to do so will be considered unlawful, and criminal sanctions and penalties could apply.

Summary

Companies House don’t currently run any proof of ID checks when registering a company directly through them. However, company formation agents like 1st Formations must verify the account holder’s and PSC’s identity via photo ID and proof of address.

If we ask you for proof of ID, the process is quick and easy, and we’ll guide you through every step. If you have any questions about ID verification or company formation, leave a comment below, and we’ll get back to you. In the meantime, take a look at the 1st Formations blog for more tips and advice on forming and running a company.