Companies House has launched a voluntary identity verification service for company directors and people with significant control. The move marks the first phase of a wider initiative to tackle corporate fraud and misuse of the companies register.
Individuals can now digitally verify their identity either directly through Companies House using the GOV.UK login or through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor. The verification aims to properly check the identity of those who are setting up and running businesses in the UK. To verify identity online, individuals must submit a UK passport, driving licence, residence permit, or Frontier Worker permit.
This rollout is the first major step under the Economic Crime and Corporate Transparency Act 2023, which grants Companies House enhanced powers to combat economic crime. Compulsory identity verification is expected to be introduced in autumn 2025, at which point over six million directors will be required to comply.
Why is verification needed
The aim of the new service is to enhance data integrity, reduce fraudulent activity, and improve the overall transparency of corporate records. According to Companies House, identity checks are fundamental to “improving the quality and reliability of our data and tackling misuse of the companies register.”
However, the move has not been without criticism. Concerns have been raised about the potential for abuse of the ACSP registration system, as it may be possible for individuals to register enabling them in turn to approve fraudulent directors.
Despite these concerns, the introduction of identity verification is viewed as a critical measure in strengthening trust in the UK’s business environment and reducing opportunities for economic crime.
If you would like to discuss the changes introduced by Companies House, please contact our team.