It mirrors a requirement in place in Ireland, where directors have to now verify their identity when being appointed to firms.
There has been widespread misuse of the UK’s company register, allowing individuals to pursue crimes including fraud.
The UK’s Economic Crime and Corporate Transparency Act 2023 introduced new laws to tackle economic crime and deliver a more reliable companies register.
It will be an offence to act as a director without being verified once director duties commence, and it can result in a fine.
“The rollout of identity verification will boost business and support growth by giving more assurance about who is setting up, running and controlling companies in the UK,” according to Companies House in the UK.
For most people this will be a one-off process that can be done in a few minutes
“Companies of all sizes will benefit from more accurate and trustworthy register data and greater protections against fraud.”
The verification process is being phased in over a 12-month period, starting this November.
Companies House reckons between six to seven million people will need to verify their identity between then and November 2026.
“For most people this will be a one-off process that can be done in a few minutes,” it noted.
From November 18, new directors will need to verify their identity to incorporate a company or be appointed to an existing company. Existing directors will need to confirm they have verified their identity at the same time as they file their next annual confirmation statement, during the 12-month transition period.
Existing persons with significant control of a company will need to verify their identity in line with an appointed day within 12 months of the commencement of mandatory identity verification on November 18.
Louise Smyth, the chief executive of Companies House, said over 300,000 people have already verified their identity, after voluntary verification began last April.
“Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register,” she added.
In Ireland, company directors must provide their PPS number when submitting forms to the CRO relating to the incorporation of new firms, the filing of annual returns, and notifying changes of company directors or secretaries.
source