Major changes are continuing at Companies House as part of the government's efforts to improve corporate transparency and tackle economic crime. One of the most significant developments is the introduction of compulsory identity verification for company directors and Persons with Significant Control (PSCs).
The transition period is now underway, and affected individuals will eventually need to complete verification before they can file information or carry out certain actions on behalf of a company. Although some businesses are already aware of the changes, many smaller companies have not yet reviewed what the new rules may mean in practice.
The identity verification process is intended to confirm that the individuals connected with UK companies are genuine and properly linked to the businesses they control. Verification can either be completed directly with Companies House or through an Authorised Corporate Service Provider, such as an accountant or company formation agent.
The reforms form part of wider changes that are gradually transforming Companies House from a largely passive filing registry into a more active gatekeeper with greater powers to question, challenge and remove information that appears inaccurate or suspicious.
For many smaller businesses, the practical impact may simply involve making sure that director details are correct and ensuring that identity checks are completed before filing deadlines arise. However, businesses that leave preparations until the last minute could face delays and administrative difficulties.
Now may be a good time for company directors to review their Companies House records and consider whether any action is required before the new requirements become fully operational.
