Company directors and persons with significant control of a business will have to verify their identity with Companies House from today.
Companies House is phasing in identity verification over 12 months amid efforts to tackle economic crime.
It aims to make it harder for people to set up companies or appoint directors using fake or stolen identities, while making it easier to expose disqualified directors and link multiple directorships to one person – helping to identify criminal networks.
Identity verification will also help Companies House take enforcement action as they will know who is really behind a company.
More than 1.5 million individuals have already verified their identity since Companies House launched its identity verification service on a voluntary basis in April.
There are 2 ways for individuals to verify their identity: either directly with Companies House through GOV.UK One Login; or through an Authorised Corporate Service Provider (ACSP).
Identity verification through GOV.UK One Login is free. It can usually be completed in minutes using existing forms of ID, such as passports and driving licences, or by answering security questions.
Companies House is contacting companies directly with information around deadlines for compliance. Directors and PSCs can also check the Companies House register to see identity verification due dates for all their roles.
Not complying with identity verification requirements on time is deemed as an offence and Companies House says it will take enforcement action against those who don’t do so – including financial penalties, referral to The Insolvency Service and prosecution through court.
Companies House chief executive Andy King said: “We’re determined to help create an environment where honest businesses can thrive. We want them to know that when they’re doing business with another company, the information we hold about them is accurate and trustworthy.
“We also want to prevent people from starting and running companies for criminal purposes.”
boohoo & Debenhams Group invest in AI ahead of festive season