Companies House to introduce identity verification for directors

The UK Government has published the results of its consultation on Corporate Transparency and Register Reform.  Further information is available on the Companies House website

The headline outcome from this process is that a system will be introduced to verify the identity of company directors and People with Significant Control (PSCs) before their appointment can be accepted at Companies House.  Whilst the system will initially apply to new appointments, the intention is that it will eventually be rolled out to all directors and PSCs, including those already on the register.

The announcement states that “Companies House will develop a fast, efficient, 24/7 digital verification process to minimise any strain on business, and prevent delays in incorporations and filings”.  The proposals also include a facility whereby certified third party agents (such as accountants and other professional advisers) will be able to “pre-validate” individuals.

The purpose of these proposals is to improve corporate transparency and reduce the opportunity for fraud.  This represents a radical change to the registration process and it is likely that a workable system will take some time to develop and put in place.

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