Companies House sets date for identity verification changes
As part of the Economic Crime and Transparency Act 2023 reforms, identity verification will begin in early 2025 for all company directors and persons with significant control (PSCs).
In an effort to reduce fraud and increase transparency, over seven million directors will need to verify their identity before submitting information to Companies House.
From spring 2025, accounting firms and solicitors registered for anti-money laundering will be allowed to provide verification services to their clients. New incorporations and director appointments will require identity verification by autumn 2025. Directors and PSCs of existing companies will have until autumn 2026 to verify their credentials.
This will require substantial updates to Companies House's IT systems, which will be phased in over the next few years. More detailed shareholder information will also be published as part of the reforms.
Companies House fees will increase on 1 May 2024 to fund these changes. By 2027, there will be a new penalty scheme to ensure compliance and mandatory filing of electronic accounts will be mandated. A timeline will be kept under review depending on parliamentary approval, according to Companies House.
With Companies House adopting an iterative implementation approach, these reforms represent a significant move towards modernisation.
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