 which require anyone who becomes a company director or person with significant control (PSC) to verify their identity. ){kind=link}
Changes to Companies House rules have come into force today (18 November) which require anyone who becomes a company director or person with significant control (PSC) to verify their identity.
Introduced as part of the Economic Crime and Corporate Transparency Act 2023, the new rule is aimed at making it harder for people to set up companies or appoint directors using fake or stolen identities as well as making easier to expose disqualified directors, and link multiple directorships to one person, helping to identify criminal networks.
Companies House said more than than 1.5 million individuals have verified their identity since the identity verification service was launched on a voluntary basis in April.
Not complying with the identity verification requirements is an offence. Action that could be taken includes financial penalties, referral to The Insolvency Service and prosecution through court.
Companies House chief executive, Andy King said:
“We’re determined to help create an environment where honest businesses can thrive. We want them to know that when they’re doing business with another company, the information we hold about them is accurate and trustworthy. We also we want to prevent people starting and running companies for criminal purposes.”
Small business minister, Blair McDougall said:
“Mandatory identity verification marks a turning point in protecting honest businesses and hard-working consumers from fraud
“When companies can trust the information on the Companies House register, they can make better decisions about who they work with. This will boost confidence, attract investment, and support our mission to grow Britain’s economy.”
Security minister, Dan Jarvis said:
“Criminals are using fake companies as fronts for serious organised crime and they must be stopped.
“These new measures will ensure fraudulent directors are rooted out and banned, as we continue to pursue those who use dirty money for criminal gain.
“We have intensified our efforts with law enforcement to dismantle criminal networks across the country and have recovered more than £300 million overall in criminal assets in the last year.”
How to verify your identity with Companies House
There are two ways for individuals to verify their identity:
- directly with Companies House through GOV.UK One Login for free
- through an Authorised Corporate Service Provider (ACSP)
The first option can usually be done using existing forms of ID, such as passports and driving licences, or by answering security questions.
Directors and PSCs need to provide a statement with their personal code confirming they have successfully verified their identity for each company role they hold.
Statements for existing directors must be submitted with the company’s confirmation statement.
As the date by when they need to do this varies, Companies House is contacting companies directly with this information.
Directors and PSCs can also check the Companies House register to see identity verification due dates for all their roles.
Full guidelines on Companies House identify verification are here.