Identity verification will manage who is setting up and running companies listed on Companies House.
Becoming legislation later this year, owners will need to comply with identity verification to incorporate their companies in the public registry, which currently lists 5.35 million active businesses.
A transition period of 12 months after the legal requirement is passed will allow more than 6 million individuals to get up to speed. Meanwhile, burdens are reduced on companies during a voluntary period to uptake identity protections now.
Their identities will need to be verified directly with Companies House through GOV.UK One Login or via an independent Authorised Corporate Service Provider.
The introduction of identity verification will create a key change in company law, ensuring the incorporation of companies is conducted properly to improve the quality of their data and tackle misuse of the companies register, Companies House CEO Louise Smyth CBE said.
The UK company law will change under the Economic Crime and Corporate Transparency Act, empowering Companies House to help “disrupt economic crime and support economic growth”.
Directors are encouraged to save time later on by completing verification processes during the voluntary window. The mandatory burden will be implemented in Autumn 2025.
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”.
The identity protections will create assurances of UK businesses and lenders and protect the UK economy from fraud and financial crime.
