Introduction
Companies House has introduced new rules to make company ownership more transparent and secure. If you’re a director or material ultimate beneficial owner, or planning to become one, you will need to have your identity independently verified by an authorised agent.
Here we explain what the new rules are, why they matter and how to comply with them.
Why is Companies House introducing Identity Verification (IDV)?
The goal is simple: to prevent fraud and boost trust in UK businesses.
Previously, it was easy to register fake companies or use false names. As part of the new Economic Crime and Corporate Transparency Act 2023, IDV will help ensure that all directors and material ultimate beneficial owners are real, traceable individuals.
Who needs to verify their identity?
How can ProSec help with IDV?
As a regulated corporate services provider and verified Companies House Authorised Corporate Service Provider, we can provide the independent verification of the ID documentation provided by Directors and PSCs. All you will need to do is provide the necessary documentation to us when we ask for it.
Once the IDV check has been completed, each individual will receive a unique identity code (similar to a company’s authentication code). This code will then be required in order to make any future filings at Companies House that relate to the relevant individual including the annual Confirmation Statement.
Read our brochure to find out more about how we can help you.
When is IDV being introduced?
As yet, there is no fixed timescale, but Companies House are looking to require all existing Directors and PSCs to complete their verification by Spring 2026.
Since the new regulations were announced, ProSec have been asking for IDV documents for all new Directors we have appointed. This means we are already getting ready, to the extent possible, to comply with the new IDV process once it is introduced.
What happens if you don’t comply?
Failure to verify your identity can have significant consequences, including delays in registering as a director, fines or enforcement actions against the company or being removed as a director if you’re already on the register.
If you’re unsure about what you need to do, don’t worry – if you are an existing client, ProSec will be contacting you at the appropriate time in the new year to let you know what we need in order to make sure you and your company stays compliant.
