Companies House identity verification: is your business prepared?

Companies House has introduced new identity-verification requirements as part of wider reforms designed to improve the accuracy of the companies register and tackle fraudulent activity.

The requirements affect company directors and people with significant control, commonly known as PSCs.

For business owners, understanding what needs to be completed and when is important. Failing to take the necessary steps could create difficulties when filing company information or completing a confirmation statement.

Why Has Identity Verification Been Introduced?

Historically, Companies House had limited powers to verify the identities of people setting up, managing or controlling companies.

The new requirements are intended to:

• Reduce the misuse of UK companies
• Improve the accuracy of information held by Companies House
• Make it more difficult to register false appointments
• Help prevent fraud and other unlawful activity
• Increase confidence in the companies register

The changes form part of a wider move towards greater corporate transparency and accountability.

Who Needs to Verify Their Identity?

The requirements apply to individuals in several company roles, including:

• New and existing company directors
• People with significant control
• Certain members of limited liability partnerships
• Individuals registering as authorised Companies House agents

Additional requirements will be introduced for other roles as the reforms continue.

What Is a Companies House Personal Code?

Once an individual has successfully verified their identity, they receive a personal code from Companies House.

This code is unique to the individual rather than to a particular company.

Directors must provide their personal code as part of their company’s confirmation-statement process. A director involved with several companies will need to provide the same personal code separately for each company.

The code should be stored securely and only shared with trusted individuals or professional advisers who need it to complete an authorised filing.

What About People With Significant Control?

People with significant control must also verify their identity and provide their personal code to Companies House.

The process and deadline may depend on whether the individual is also a director of the company.

Someone who is both a director and a PSC may need to provide their code separately for each role. Completing the director requirement does not necessarily complete the PSC requirement.

This makes it important to check the position carefully rather than assuming one submission covers everything.

How Can Identity Be Verified?

Individuals can usually verify their identity directly through GOV.UK using suitable identity documents.

Alternatively, verification may be completed through an Authorised Corporate Service Provider, such as an appropriately registered accountant, solicitor or company-formation agent.

The most suitable route will depend on the individual’s circumstances and the documents available to them.

What Should Businesses Do Now?

Businesses should review their Companies House records and identify everyone who is required to complete verification.

They should also:

• Check that director and PSC information is accurate
• Confirm when the next confirmation statement is due
• Ensure the appropriate individuals have completed verification
• Record personal codes securely
• Check whether separate PSC action is required
• Speak to their accountant or legal adviser if the company structure is unclear

Businesses should not leave this until immediately before a filing deadline.

Keeping Your Company Compliant

Companies House now has stronger powers to question information, reject filings and take action where legal requirements are not met.

Identity verification should therefore form part of every company’s wider compliance arrangements.

Are you uncertain about your Companies House responsibilities?

Signature Concierge can connect you with the appropriate accounting or legal specialist to review your company records, explain the identity-verification requirements and help you take the necessary next steps.

Contact Signature Concierge today for further guidance.