Major Companies House change launched as business leaders called to action
Business leaders can now verify their identity on Companies House as part of a major drive designed to slash economic crime.
As of today, 8 April, directors can voluntarily verify their identity before it becomes a legal requirement later this year.
More than six million individuals will need to comply in the 12 months after identity verification becomes compulsory.
In a statement, Companies House said the phased approach “reduces the burden” on businesses.
Business leaders can now verify their identity directly with Companies House through GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP).
The move forms one of the changes to UK company law under the Economic Crime and Corporate Transparency Act 2023.
The legislation gave Companies House new and enhanced powers “to help disrupt economic crime and support economic growth”.
Companies House said the change will “provide more assurance about who is setting up, running, owning and controlling companies in the UK”.
Last March, Companies House launched an “urgent review” after the government-owned corporate register saw one account file 800 “erroneous” forms on 190 companies, raising fears over a sophisticated fraud targeted at banks.
Banking trade body UK Finance issued an “urgent” notice to its members regarding hundreds of “erroneous” filings made at Companies House towards the end of last month.
The warning concerned roughly 800 forms on 190 companies related to the discharging of financial liabilities that were not submitted by the relevant financial firm or its client business.
Companies House change to become mandatory in the autumn
Companies House CEO Louise Smyth CBE said: “Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.
“To save time later, we encourage directors, people with significant control of companies (PSCs) and those filing information with Companies House to verify their identity during the voluntary window.
“We expect identity verification to become mandatory from autumn 2025.
“To reduce the burden on business, the IDV requirement for existing directors will be integrated into the annual confirmation statement update process.”
‘Economic crime has become too common’
Minister for employment rights, competition and markets Justin Madders MP added: “In a time where economic crime has become too common, it is imperative that we bring in measures to prevent identities being stolen online and today marks a significant milestone in our plans to require identity verification for those setting up and running companies on the Companies House register later this year.
“This is good for business, lenders and transparency and will give companies, consumers and lenders more certainty about who they are doing business with.”
The legislation will bring in some of the biggest reforms to Companies House since it was set up in 1844.
The changes target companies, limited partnerships, other types of corporate entities and the registration of overseas organisations.