Companies House begins identity verification for company directors

Companies House has begun phasing in compulsory identity verification for company directors over the next 12 months from 18th November.

Changes mean anyone who becomes a company director or person with significant control (PSC) will need to verify their identity with Companies House. This change will provide more assurance about who is setting up, running, owning and controlling companies in the UK, and take action against economic crime.

More than 1.5 million individuals have already verified their identity since Companies House launched its identity verification service on a voluntary basis in April.

Existing directors and PSCs will now be required to verify their identities over the next 12 months as part of a phased launch, either directly with Companies House through their GOV.UK One Login, or via an Authorised Corporate Service Provider such as a accountancy or law firm.

Identity verification through GOV.UK One Login is free. It can usually be completed in minutes using existing forms of ID, such as passports and driving licences, or by answering security questions. Extensive customer support is on hand.

In most cases, individuals will only need to verify their identity once. Once they have successfully verified their identity they will receive a personal code from Companies House.

Directors and PSCs will 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. Companies House is contacting businesses directly with the date when they need to comply with the new rules.

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.”

Jonathan Geldart, Director General of the Institute of Directors said:

“The Institute of Directors welcomes the introduction of mandatory identity verification for company directors. Strengthening the integrity of the Companies House register is a vital step in tackling economic crime and improving trust in UK business. These measures will help ensure that those in positions of responsibility are clearly identifiable, reinforcing confidence among investors, customers and the wider public. We encourage all directors to prepare early and comply promptly with the new requirements.”

Shevaun Haviland, Director General of the British Chambers of Commerce, said:

“The introduction of these new security measures will be welcomed by the thousands of genuine businesses who want to know that fraudsters and criminals cannot masquerade as legitimate concerns.

“Protecting the names of good firms and making it harder for those with dishonest motives to set up a business can only be a good thing.”

Not complying with identity verification requirements on time is an offence. There will be a range of consequences for non-compliance with identity verification requirements, including:

• prosecution through court
• financial penalties
• referral to the Insolvency Service