Companies House starts to verify identities
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 introduction of identity verification is one of the key changes to UK company law under the Economic Crime and Corporate Transparency Act 2023. This landmark legislation gave Companies House new and enhanced powers to help disrupt economic crime and support economic growth.
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.
Companies House CEO Louise Smyth CBE said:
Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register.
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.
To reduce the burden on business, the identity verification requirement for existing directors will be integrated into the annual confirmation statement update process.
Minister for Employment Rights, Competition and Markets Justin Madders MP said:
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.
This is good for business, lenders and transparency and will give companies, consumers and lenders more certainty about who they are doing business with.
AI and Digital Government Minister Feryal Clark MP said:
Ensuring trust and transparency in the digital age is vital and today marks an important step forward. Identity verification at Companies House through our GOV.UK One Login service will make it easier to do business with confidence – protecting entrepreneurs, consumers, and the UK economy from fraud and financial crime.
By embracing digital identity checks, we’re reducing red tape while strengthening our defences against abuse of the system. This is a win for businesses, a win for transparency, and a win for economic growth – a key driver for our Plan for Change.
Shevaun Haviland, Director General of the British Chambers of Commerce said:
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.
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.
Thom Townsend, Executive Director, Open Ownership said:
Open Ownership welcomes the introduction of identity verification for individuals listed on Companies House. This will make the information on Companies House more accurate, reliable, and ultimately more useful, and ensures the UK meets international standards.
Ben Cowdock, Senior Investigations Lead, Transparency International said:
We welcome the introduction of ID checks at Companies House, which should make it harder for criminals to hide behind false identities. Having greater assurance over who owns and controls companies is a vital step towards defending the UK against money laundering and building confidence in the business environment.
Glenn Collins, Head of Technical and Strategic Engagement at the Association of Chartered Certified Accountants (ACCA) said:
At ACCA, we welcome the moves to improve and strengthen the integrity of the register, which includes the introduction of identity verification for anyone setting up, running, owning or controlling a company in the UK.
We recognise that businesses, including agents will take some time to get used to the changes and extra requirement. We expect our members to be busy advising and helping companies of all sizes adapt to these new regulations and we look forward to continuing to work with Companies House to make sure of a good transition.
Overall identify verification will help to reduce economic crime and improve corporate transparency. In doing so, it will contribute to the growth of the UK economy by helping businesses make better decisions.
Patrick Walsh, Chair of the Business Informational Providers Association (BIPA) said:
BIPA welcomes Companies House’s launch of the new identity verification measures, as set out in the Economic Crime and Corporate Transparency Act. These are crucial steps towards realising the enhanced security and transparency that the Act aims to achieve.
The implementation of these robust checks will deter fraud and bolster confidence in Companies House as the custodian of reliable business data.
We believe these measures will strengthen the UK’s economy by fostering transparency and accountability across business sectors.
BIPA remains committed to engaging with Companies House to ensure successful adoption and implementation of these important changes.
The Law Society of England and Wales Company Law Committee said:
The Law Society of England and Wales has been working closely with Companies House on the development of the new procedures for identity verification. We are pleased that Companies House is introducing the procedures on a staggered basis, which will give companies and LLPs the option to ensure their directors (or, in the case of LLPs, members) and PSCs complete the necessary checks ahead of time if they wish