Identity verification for all company directors and persons with significant control (PSCs) will begin in early 2025 as part of the Economic Crime and Transparency Act 2023 reforms. Over seven million directors will need to verify their identity before submitting information to the Companies House register, a move aimed at reducing fraud and increasing transparency.
Accountancy firms and solicitors registered for anti-money laundering will be authorised to carry out verification services for their clients from spring 2025. By autumn 2025, identity verification will become compulsory for new incorporations and director appointments. Existing companies will have until autumn 2026 to verify their directors and PSCs.
These changes require substantial updates to Companies House’s IT systems, with a phased rollout over the next few years. The reforms will also include greater transparency on company ownership, with more detailed shareholder information being published.
Increased Companies House fees, introduced on 1 May 2024, will fund these changes. A new penalty scheme will ensure compliance and mandatory electronic accounts filing is expected by 2027. Companies House notes that timelines depend on parliamentary approval and will be kept under review.
These reforms represent a significant shift towards modernisation, with Companies House adopting an iterative approach to implementation.
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