Will New Companies House Identity Verification Rules Improve the Security Industry?

From 18 November 2025, major changes are coming to the way UK companies operate. Under the Economic Crime and Corporate Transparency Act 2023, all company directors and people with significant control (PSCs) will be legally required to verify their identity with Companies House before they can file confirmation statements or take on new roles.

The goal? To crack down on the misuse of UK companies, prevent fraud, and increase transparency in corporate ownership.

What’s Changing

• Mandatory ID Checks – All directors and PSCs must prove who they are using GOV.UK One Login or through an authorised corporate service provider (ACSP), such as an accountant or solicitor.

• Personal Codes for Every Officer – Once verified, each individual will receive a unique personal code to link their verified identity to every company role they hold.

• No ID, No Filing – If a director hasn’t been verified, their company will not be able to submit its confirmation statement. This could put the company at risk of penalties or even being struck off the register.

• Applies to New Appointments Too – From the same date, no one can be appointed as a director or PSC without first proving their identity.

Why This Matters for the Security Industry

The private security sector, particularly in close protection and manned guarding, is no stranger to the challenges of vetting, transparency, and compliance. Rogue operators and “shell companies” with no genuine trading activity have long been a concern—undercutting professional providers, engaging unlicensed staff, and damaging the industry’s reputation.

By forcing every company director to go through ID verification, Companies House could make it harder for illegitimate or “fly-by-night” security firms to operate. Theoretically, this could:

• Reduce fraudulent tenders and contracts awarded to unqualified providers.

• Improve trust between clients and security suppliers.

• Strengthen links between corporate governance and BS7858-style vetting principles that already apply to security personnel.

However, the new rules also bring practical challenges:

• Administrative Burden – Directors of multiple companies will have to ensure each role is linked with the correct verification code.

• Overseas Directors – Some legitimate international security providers may find the verification process harder, especially if they lack easy access to GOV.UK One Login or ACSPs.

• Cost of Compliance – While verifying directly through GOV.UK is free, using an ACSP will likely involve a fee.

The Big Question

Will these reforms genuinely improve professional standards in the UK security industry—or will they simply add another layer of red tape for companies that are already compliant?

The industry has long campaigned for tighter regulation on the corporate side, not just at the individual SIA licence holder level. If these identity checks make it harder for untraceable directors to hide behind anonymous companies, this could be a positive step toward a cleaner, more accountable marketplace.

But effectiveness will depend on enforcement. If verification is rigorously applied and fraudulent filings are swiftly acted upon, the benefits could be significant. If not, it may end up as another well-intentioned policy with limited real-world impact.

What do you think? Do you believe mandatory identity verification for company directors will make the UK security industry more trustworthy, or will it just create more paperwork?