Companies House Urges Six Million People to Take Action Over New Legislation
In a recent development, Companies House has issued a call to action for approximately six million individuals in the UK ahead of the implementation of a new law. The law, which came into force on April 8, requires individuals to verify their identity with the agency. This verification process has been made voluntary for now, as part of a phased approach before it becomes a legal obligation later this year.
The implementation of this identity verification process is a significant change to UK company law under the Economic Crime and Corporate Transparency Act 2023. This legislation has empowered Companies House with new tools to combat economic crime and support economic growth. By verifying their identities, individuals will contribute to ensuring greater transparency in the setup and operation of companies within the UK.
To facilitate the identity verification process, a new service has been launched that allows individuals to verify their identity either through GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP). Companies House assures that the level of assurance remains consistent whether individuals verify their identity directly with them or through an ACSP.
During the voluntary period, Companies House is encouraging directors, people with significant control of companies (PSCs), and others filing information with the agency to verify their identities. The mandatory requirement for identity verification is expected to come into effect from autumn 2025. Louise Smyth CBE, the CEO of Companies House, emphasised the importance of identity verification in enhancing data quality and combating misuse of the companies register.
Smyth highlighted the role of identity verification in improving the reliability of data held by Companies House and reiterated the agency’s commitment to reducing the burden on businesses. The incoming requirement for identity verification will be integrated into the annual confirmation statement update process for existing directors, streamlining the compliance process for them.
The new legislation aims to not only enhance the integrity of company data but also to deter fraudulent activities that may be facilitated by opaque company structures. By ensuring that those setting up, running, and controlling companies are verified, the UK aims to create a more transparent and trustworthy business environment.
In conclusion, the proactive approach taken by Companies House in urging individuals to verify their identities is a crucial step towards upholding the integrity of the UK business landscape. As the deadline for mandatory identity verification approaches, directors, PSCs, and other stakeholders are encouraged to comply with the new requirements to contribute to a more transparent and secure business environment in the UK.