In preparation for new ID requirements, Companies House has begun sending emails to the registered email address it holds for many businesses. It will not have arrived for all companies yet, but they have confirmed a significant number were emailed over the last couple of weeks.
Why is director ID verification necessary?
As part of the UK’s ongoing efforts to combat economic crime and enhance corporate transparency, significant changes are being introduced regarding identity verification for company directors. These changes are mandated under the Economic Crime and Corporate Transparency Act 2023 and will be enforced by Companies House.
The primary aim of these new rules is to prevent fraudulent activities such as identity theft and the misuse of company structures for illicit purposes. By requiring directors to verify their identities, Companies House seeks to ensure that only legitimate individuals are associated with companies, thereby increasing the accuracy and reliability of the public register.
When will the new ID requirements come into effect?
I have spoken to Companies House and they are not aware of the exact date, but it is expected to commence from Autumn 2025. All individuals appointed as directors, persons with significant control (PSCs), or those filing documents on behalf of a company will be required to verify their identity. This requirement applies to both new appointments and existing roles, with a 12-month grace period for current directors and PSCs to comply.
How can directors verify their identity?
There are two primary methods for identity verification:
- Direct Verification with Companies House: Directors can verify their identity through the GOV.UK One Login service, which allows for the submission of ID documents such as passports or driving licences. If you would like to use this option, then please follow the link below rather than the links in emails you may receive. This is because I am concerned that criminals will use these new rules as part of phishing email scams.
- Verification Through an Authorised Corporate Service Provider (ACSP): Lambert Chapman LLP have been approved as an ACSP. We are therefore able to verify the identity of directors and PSC’s where we have seen their identification. We will be contacting clients where we provide a statutory service when their next confirmation statement is due for renewal to offer our services to assist with these verification checks.
Consequences of non-compliance
Failure to verify your identity as a director or PSC by the specified deadlines can result in serious consequences, including:
- Inability to make filings with Companies House
- Prevention of starting a new company or entity
- Financial penalties – We are not aware of direct fines for not verifying your identity with Companies House but the consequence of not being able to file forms online will lead to financial penalties.
If you have any questions or require assistance with the verification process, please do not hesitate to speak to your local Lambert Chapman contact.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.