Date posted: 3rd Apr 2025
By Martin Hobson, Partner
The Economic Crime and Corporate Transparency Act 2023 has introduced significant changes to Companies House regulations, aimed at enhancing transparency and combating fraud. As previously discussed in our article, some of these changes have already been implemented, but one relating to a key focus on verifying the identities of company directors and owners is about to take effect.
What are the Changes?
Starting from April 2025, Companies House will begin the process of verifying the identities of individuals associated with existing companies and Limited Liability Partnerships (LLPs). This initiative has been implemented to make company records more secure and try to reduce the recent spike in fraudulent activities.
- Voluntary Verification (From 8 April 2025): Companies can begin voluntarily verifying Identification.
- Mandatory Verification (Autumn 2025): Identification will become mandatory for all companies and LLPs. All existing directors and Persons with Significant Control (broadly speaking those with over 25% ownership/control) must have their IDs verified before their next Confirmation Statement filing following the Autumn 2025 implementation.
- New Incorporations and Appointments (After Autumn 2025): Identification will be required for all new company incorporations and any new directors/PSCs for existing companies and LLPs.
How Does ID Verification Work?
There will be two options for businesses to follow:
- With Companies House directly – the software for this is not yet released, but with 8 April 2025 as the voluntary date it is expected to be ready for then. It will involve biometric scanning of passports/driving licences, as well as using facial recognition.
- Using an Authorised Corporate Service Provider (ACSP) – accountants and other regulated professionals. Clive Owen LLP is registered as an ACSP. This allows us to manage the process in house, on your behalf.
Why is it important?
We advise all companies and LLPs to monitor the rollout of the voluntary verification process after April 8, 2025. It is important you are aware of the changes and prepare for the mandatory requirements in Autumn 2025. Failure to verify IDs may delay the filing of Confirmation Statements. Delays in doing so can negatively impact a company’s credit rating and potentially lead to further action, through fines and penalties.
How can we help?
As a registered ACSP, Clive Owen LLP can assist you with navigating these new regulations. Get in touch with the team today to find out how we could help. Click here.
