Companies House to introduce identity verification

 

As a result of the Economic Crime (Transparency and Enforcement) Act 2022, Companies House will be introducing a new identity verification process to help deter those wishing to use companies for illegal purposes.

Who do the changes affect?

The proposed changes will affect both new and of existing limited companies and other legal entities including LLPs, limited partnerships, and directors of overseas companies registered with Companies House.

 

Who needs to verify their identity?

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.

• New companies: All directors and people with significant control (PSCs) will need to complete identity verification.
• Existing companies: All directors (or equivalent) and people with significant control (PSCs) will have a transition period to verify their identity with Companies House.

Anyone acting on behalf of a company will also need to verify their identity before they can file information on behalf of the company at Companies House.

 

When does verification need to happen?

You don’t need to do anything yet!* The proposed changes are still in the final stages of parliamentary review, but once introduced;

• New companies: A verification statement must be provided at incorporation confirming the identities of all directors have been verified. You won’t be able incorporate a company without all directors being verified.
• Existing companies: Directors must, at the same time as delivering the annual Confirmation Statement to Companies House, provide a verification statement.

 

Who can verify me and how?

There will be two ways to verify your identity.

Once verified, users will have one account where they can access all Companies House services, across all companies for which they’re authorised to act for. This means, where an individual has more than one role, or is registered with multiple companies, they don’t have to complete the verification process multiple times.

Verifying your identity directly with Companies House:

Companies House will introduce a service to verify your identity using standard ID documents, such as a passport. There’ll be a range of support and services available to help you complete this process, including a verification system which links a photo of your face with the photo on your ID document.

Verifying your identity through an authorised agent:

Companies House authorised agents, also known as Authorised Corporate Service Providers (ACSPs), are individuals or organisations that undertake anti-money laundering supervised activity, such as company formation agents, solicitors and accountants.

At TC Group, we have Authorised Corporate Service Providers across our offices, available to support you with your verification when the time comes.

 

What happens if verification is not completed?

Verification will be mandatory. Failure to verify would constitute an offence, punishable with imprisonment or a fine, or both. Although this hasn’t yet been set out in the regulations, failure to comply may also trigger compulsory strike-off action against companies.

 

For assistance or more information about identify verification, contact your TC Group Relationship Manager, or get in touch today.

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*information is true at the date of publication 29/07/2024