In one of the biggest changes at Companies House for years, its new ID powers kicked in today – forcing company directors to verify their identity or risk facing new enforcement powers.
Starting from 18 November, anyone who becomes a company director or person with significant control will need to verify their identity via GOV.UK One Login or an authorised corporate service provider (ACSP).
Those who can be ACSP, which there are currently over 15,000 registered since March, need to be lawyers, accountants, or company formation agents.
More than 1.5m individuals have already verified their identity since Companies House launched its identity verification service on a voluntary basis in April.
The Companies House website, which currently lists over 5.4 million businesses, will now indicate under the named person whether they have completed or not completed the two-step verification process.
Not complying with identity verification requirements on time is an offence, which Companies House will take a “proportionate approach to enforcement”, including financial penalties, referral to the Insolvency Service, or prosecution through court.
The new ID step aims to make it more difficult for individuals to establish companies or appoint directors using fake or stolen identities. It will also make it easier to expose disqualified directors and link multiple directorships to one person, helping to identify criminal networks.
The new powers come under the Economic Crime and Corporate Transparency Act.
As revealed by City AM, Revolut co-founder Nik Storonsky changed the spelling of his name on Companies House ahead of the introduction of new identity verification rules.
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 we want to prevent people starting and running companies for criminal purposes.”
Small Business Minister, Blair McDougall, added, “When companies can trust the information on the Companies House register, they can make better decisions about who they work with. This will boost confidence, attract investment, and support our mission to grow Britain’s economy.”
This comes as Companies House’s five-year strategy includes the aim by 2030, to “be the trusted guardian of corporate transparency, acting as a catalyst for economic growth, whilst protecting businesses and people from harm.”