How Companies House is Transforming ID Verification for Modern Businesses

How Companies House is Transforming ID Verification for Businesses

With no doubt, business owners with companies and those looking to expand their businesses to the UK are aware of the identity verification changes by Companies House. Companies House did not verify the individual’s identity during company formation or filing statutory records, creating a gap in corporate transparency that allowed fraudulent actors to misuse the register.

As part of the Economic Crime and Corporate Transparency Act (ECCTA), Companies House changes are enhancing corporate transparency and combating fraud.

Apart from being authorised by Companies House and helping companies incorporate, third parties must register as an Authorised Corporate Service Provider (ACSP). ACSP must find the right technology that aligns with the Companies House standards to support identity verification requirements.

Read along to understand how identity verification works and how BusinAssist can help.

Mandatory identity verification check is now underway

The identity verification changes have been introduced as a way for Companies House to enhance accuracy and transparency in the company register. The changes are expected to become mandatory in Autumn 2025, while the voluntary verification process is ongoing.

Identity verification aims to ensure that company directors and those in control are who they claim to be, preventing abuse of UK corporations by criminal actors.

Those who need to verify their identity include directors, individuals with significant control (PSCs), members of a limited liability partnership (LLP), the secretary, and third parties (such as individuals with significant control (PSCs), members of a limited liability partnership (LLP), the secretary, and third parties (such as accountants, company formation agents, and solicitors).

Companies House Personal Code

Once an individual is verified, they will be issued a unique personal code that serves as proof of verification. This code is essential for future interaction with Companies House. There are two categories of verifying your identity, that is;

Individual identity

• Through Companies House, one login site
• GoV.UK ID Check app
• In-person Post Office

Using ACSP

They need to be authorised by Companies House to verify on behalf of the company.

The personal code will belong to the individual who has been verified and not the company, which serves to identify them. The code will be used across all the individual roles and the companies they are involved in.

From Autumn 2025, a personal code will be used to identify individuals being appointed as;

• A director of the company
• As a member of an LLP
• As a person with significant control (PSC)

For existing companies, depending on the date of the implementation of the mandatory verification, their first annual confirmation statements will require them to use a Companies House personal code. This means that their identity will need to be verified to get the personal code.

The code establishes a more secure and transparent system of corporate responsibility, as it directly links verified individuals to their respective companies.

Consequences for non-compliance

Companies House has made it clear that serious consequences for companies that do not comply with identity verification. The consequences include;

No verification, no company

If a company director and people with significant control (PSC) do not verify their identity, the company will not be incorporated. Once the verification process is made mandatory, no new company will be able to be registered without all relevant individuals providing a verified personal code.

Penalties

Existing companies that fail to verify their identity will face significant financial penalties, which can affect the company’s finances. The penalties can vary depending on the jurisdiction and the nature of the violation.

Legal action

Regulatory bodies may initiate legal actions against businesses and individuals who are non-compliant. The legal action can result in legal fees, reputational damage, and settlements.

Reputational damage

Non-compliance can severely damage a company’s reputation. This may lead to customers losing confidence in the business, further damaging its finances.  

Why choose BusinAssist as your ACSP?

As an Authorised Corporate Service Provider (ACSP), BusinAssist checks align with the new identity verification rules. The verification services are fast and reliable. Once a client submits all the documents required to complete the verification process, it only takes a few minutes to get the Companies House personal code.

You can easily verify your identity no matter where you are. The verification process can be done online, making it flexible for international businesses.

By verifying your identity, you will be compliant with Companies House regulations and protect your business reputation. 

Get in touch with BusinAssist today to help your company verify its identity and stay ahead of the changes. 

Guest Article.