Do Sole Traders Need Companies House Verification?
Sole traders do not verify with Companies House, but incorporating, director roles and shareholdings change that. What applies to you and when.
Sole traders do not need to verify their identity with Companies House. A sole trader business is registered with HMRC for Self Assessment, not with Companies House, so the verification rules introduced by the Economic Crime and Corporate Transparency Act 2023 do not apply to it. The picture changes the moment you incorporate, take a director role or join an LLP, and that is when many sole traders are caught out.
Who Does Need Companies House Verification?
| Business type | Registered with | Verification needed? |
|---|---|---|
| Sole trader | HMRC | No |
| Ordinary partnership | HMRC | No |
| Limited company | Companies House | Yes: directors and PSCs |
| Limited Liability Partnership (LLP) | Companies House | Yes: members and PSCs (see our LLP guide) |
When a Sole Trader Needs to Verify
You are moving to a limited company
Incorporating is the most common trigger. New directors must be verified before they can be appointed, so verification now comes before incorporation, not after. If you are planning to switch from sole trader to limited company, for tax reasons or because a client requires it, verify first. Our new director verification guide explains the order of steps.
You already hold a role elsewhere
Many sole traders are also directors of a family company, a residents' management company for their block of flats, or a community interest company. Each of those roles requires verification, even if you are unpaid. See our director verification requirements and our guide for charity and CIC directors.
You hold shares in a company
Owning more than 25% of a company's shares or voting rights makes you a person with significant control, who must verify. See do shareholders need verification?
Incorporating Soon? Verify With CorpAssist First
If you are about to become a director, verifying before incorporation keeps your new company on schedule:
- Complete a 10-minute online form from your computer, with no app, NFC phone or Post Office visit
- A compliance officer checks your application before submission, so it is right first time
- Fast Track processed within 24 hours if your incorporation date is fixed
- Your Personal Code is yours for life and covers every future company you join
- Passports from 190+ countries accepted, including non-biometric passports
- From £29.99 + VAT, with free resubmission if a document needs to be replaced
Watch Out for Scam Emails
As the deadline approaches, fraudsters are sending emails that claim every business must verify, including sole traders, and ask for payment or document uploads through a link. Companies House does not require sole traders to verify. Our scam email guide shows how to tell a genuine message from a fake one.
Frequently Asked Questions
Do sole traders need to verify their identity with Companies House?
No. Sole traders register with HMRC, not Companies House, so the identity verification requirement does not apply to a sole trader business. It applies once you become a director, a person with significant control or an LLP member.
I am setting up a limited company. When do I verify?
Before the company is incorporated. Since 18 November 2025, new directors must be verified before they can be appointed, and PSCs named on incorporation must verify too. Verify first so that the incorporation is not held up.
Do partners in an ordinary partnership need to verify?
No. Ordinary partnerships are not registered at Companies House. Members of a Limited Liability Partnership (LLP) are, and they must verify.
I am a sole trader but also a director of another company. Do I need to verify?
Yes, for the director role. Verification is linked to you as a person, so it covers every company appointment you hold, but it has nothing to do with your sole trader business.
Someone emailed me saying I must verify as a sole trader. Is that genuine?
Treat it with suspicion. Companies House does not require sole traders to verify. Read our guide to Companies House verification scams before clicking any link.
This guide is general information, not legal or tax advice. CorpAssist is an independent commercial service and is not Companies House, HMRC or GOV.UK. We facilitate identity verification through a registered Authorised Corporate Service Provider. Source: GOV.UK identity verification guidance.
Last verified: September 2026
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