Associate Emma Ford, in our Corporate & Commercial team, explains the new identity verification process that has been introduced at Companies House, and how UK businesses can remain compliant.
New compliance requirements, designed to improve transparency in relation to the structure and ownership of UK companies, are set to be introduced by Companies House later this year.
What is changing and who will this apply to?
Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to be.
Identity verification (IDV) will become mandatory for both newly incorporated and existing companies, and apply to:
- company directors or the equivalent (including members, general partners and managing officers),
- persons with significant control (PSC), and
- anyone who files on behalf of a company (such as a company secretary) or is delivering documents to Companies House on behalf of a company.
Relevant individuals will be required to verify their identity using the GOV.UK One Login service, in person at a Post Office, or via an Authorised Corporate Service Provider (ACSP), a professional, such as an accountant or solicitor, who is authorised by Companies House to verify the identity of individuals on behalf of companies. Upon successful verification, individuals will receive a unique personal code, which will link to all of their roles at Companies House going forward.
In addition to providing the documentation required to verify their identity, individuals will need to answer security questions and their personal details, including their full name (and any former names), date of birth, a valid email address and their current home address (and any other addresses lived in in the previous 12 months) will be checked.
When will these changes be introduced?
Exact timings have yet to be confirmed, but the requirements for all relevant individuals associated with a newly incorporated company, and relevant newly appointed individuals associated with an existing company, are expected to be in place by autumn 2025. The requirements are expected to extend to anyone filing documents with Companies House, such as accountants or company secretaries, by spring 2026.
There will be a 12-month transition period for relevant individuals already associated with an existing company to comply with the new requirements.
Companies are therefore advised to review and update their records where required.
Why are these changes being introduced?
The new requirements, introduced under the Economic Crime and Corporate Transparency Act 2023, are designed to provide greater transparency around the structure and ownership of UK companies, to help reduce fraud and other forms of crime, and improve trust and the accuracy of information on the Companies House register.
Will there be penalties for failing to comply?
It is anticipated that, following the 12-month transition period, Companies House will take enforcement action against those companies and individuals not meeting the new requirements.
Any individual who does not comply may face financial penalties, criminal proceedings and/or be removed from the Companies House register.
Failing to comply could also result in companies being restricted from filing required documentation at Companies House or further penalties.
We would advise that companies commence the verification process as soon as possible in advance of the commencement of this process. Should you require any guidance regarding compliance with the new Companies House requirements, please get in touch with our Corporate & Commercial team.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
