As part of the Economic Crime and Corporate Transparency Act 2023, all directors, persons of significant control (PSCs) and limited liability partnership (LLP) members will be required to verify their identity with Companies House.
Although the exact date when this is to take effect is yet to be confirmed, Companies House has stated it will be in Autumn 2025.
Why has this been introduced?
1. Enhance transparency and improve data integrity
Accurately identifies individuals behind companies, ensuring a trustworthy and reliable database.
2. Prevent fraud and / or illegal activities
Makes it easier to trace individuals using companies for illicit purposes.
3. Compliance with AML regulations
Helps businesses verify identities, reducing the risk of money laundering, terrorist financing and financial crimes.
4. Facilitate digital transformation
Digital identity verification is efficient and accessible for most.
5. Linked-individuals account
Directors, PSCs and LLP members can link all their companies in one space, avoiding the need for repeated ID verifications.
What does this mean for you?
If you are a director, PSCs or a member of an LLP, you will be legally required to verify your identity with Companies House. This will be the case for both new and existing companies.
How can I verify?
There will be two main ways that you can verify your identity with Companies House:
1. The ‘digital’ method:
This will be a cloud-based identity and access management provider which will allow individuals to carry out the identity process on their own.
The process will involve creating an account with Companies House and Gov.uk One Login, uploading approved identity documents (such as a passport or driving licence) and taking a photo of your face. The system will then attempt to verify you. The Post Office has also won a government contract to assist with this method.
If you cannot verify using this method, for example because you do not have access to a smartphone, the digital method is not working for you or you simply do not want the hassle, then you can verify via option 2 below.
2. The ‘non-digital’ method:
This will involve an Authorised Corporate Service Provider (ACSP) checking your identity and verifying this for you. An ACSP is a body who has been approved by Companies House to carry out these checks.
Glaisyers ETL are an ACSP and offer this service to clients for a small fee who wish for us to verify them. For existing clients, this will be a very quick process as we will already hold identity documents on file for you. For new clients, we can help sort this for you via a face-to-face meeting with adequate identity documents, or via our own identity check system.
We will also be able to assist companies who have multiple directors that wish to identify all of their directors / PSCs / LLP members at once.
The introduction of mandatory identity verification is a significant step towards enhancing transparency, preventing fraud and ensuring compliance with anti-money laundering regulations. As a director, PSCs or LLP member, you will need to verify your identity with Companie House, either via the digital method or through an ACSP like Glaisyers ETL.
Get in touch
Please do not hesitate to contact the Corporate team at Glaisyers ETL if you have any questions or need assistance with the verification process. We are here to help you navigate these changes efficiently and accurately.
