Earlier this week, on 8 April, a new service was launched to allow individuals to verify their identity directly with Companies House using GOV.UK One Login. People can also verify their identity through an Authorised Corporate Service Provider (ACSP).
The introduction of identity verification is one of the key 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.
“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,” Justin Madders, the minister for employment rights, competition and markets, said.
“This is good for business, lenders and transparency and will give companies, consumers and lenders more certainty about who they are doing business with.”
Companies House said identity verification will provide more assurance about who is setting up, running, owning and controlling companies in the UK. There will be the same level of assurance whether individuals are verifying their identity directly with Companies House or through an ACSP.
“Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register,” Companies House chief executive Louise Smyth said.
“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.”
Smyth added that the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process to reduce the burden on business.
Shevaun Haviland, director general of the British Chambers of Commerce, welcomed the initiative.
“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,” Haviland commented.
“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.”
See government guidance on identity verification here.