Company directors and People with Significant Control (PSCs) will soon be required to provide personal identification to Companies House.
From November 18, identity verification will become a legal requirement under the Economic Crime and Corporate Transparency Act 2023.
This is a major change that will help remove the details of those appointed without consent as is the latest in a string of reforms aiming to improve the accuracy of the companies register and combat economic crime.
An estimated 7.4m existing officers will need to undergo verification and can do so voluntarily before the requirement becomes mandatory.
You will need to identify yourself, if you are:
- A director listed at Companies House, and the company is registered in the UK (including England, Scotland, Wales and Northern Ireland)
- A member of an LLP (Limited Liability Partnership), registered in the UK
- A PSC of a UK company or LLP
- A director of an overseas company with a UK establishment
The identification process, is a one-time process that needs to be completed before any such filing.
When the new ID verification checks come in to place for existing directors and PSCs, a 12-month transition period applies.
However, company directors must be compliant by the time the first Confirmation Statement is due after November 18.
PSCs must complete the identification checks during the first 14 days of their birth month, providing that they are not already verified as a director.
All newly-appointed directors and LLP members will need to verify their identity before acting in their role.
This must be completed within 14 days of appointment. PSCs when appointed, will be contacted by Companies House directly, and they then have 14 days to complete the verification process.
When it comes to starting a new company, all directors must be verified before incorporation.
PSCs will be contacted by Companies House or may be verified by the company during incorporation.
With the deadline fast approaching, it’s advisable to voluntarily verify your identity now and ensure fellow directors and PSCs are also aware of the action they need to take.
