Companies House reforms – verification of identity
In this article, we briefly explore the identity verification requirements in the Economic Crime and Corporate Transparency Act 2023 (the “Act”), which received Royal Assent in October 2023.
The Act aims to improve transparency over UK companies primarily by reforming the role of Companies House. One of the key issues in the Act for companies is the requirement for certain individuals to have their identify verified before making Companies House filings.
New company directors will need to have their identity verified before notifying Companies House of their appointment as a director.
During a transitional period, existing directors will be required to have their identify verified before the company files its next confirmation statement after the new rules take effect.
People with significant control (“PSCs”) will also need to be verified on becoming a PSC. Where a PSC is a company or other entity, one of its officers will need to be verified.
In addition, anyone who is delivering documents to Companies House, either on their own behalf or on behalf of another party, will need to have their identity verified unless they are an employee of an Authorised Corporate Service Provider (“ACSP”) acting in the course of their employment. It is likely that professional firms such as accountancy firms and law firms will apply to become ACSPs.
When an individual’s identity has been verified, that individual will be allocated a unique identifier allowing Companies House to maintain a database of verified individuals. Provided individuals maintain their verified status, they will not need to have their identity re-checked each time they make a Companies House filing.
There is currently no final timetable on when the identify verification procedures will be introduced, as Companies House will need to update its systems and processes.
If you have any questions about the proposed changes, please contact Harry Dronfield, Mark Thomas or your usual MKS contact.
This article is provided for information purposes only. It is not intended to constitute legal advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances.