Companies House Published Draft for ID Verification Compliance Rules

Companies House recently released a draft of its identity verification rules. The new compliance rules are much stricter than before, making it harder for business owners to set up a company. However, they are designed to prevent the registration of fraudulent companies and ill-intentioned directors from taking advantage of the system.

How have the Registration Rules Changed?

Earlier this year, the Companies House increased the cost of registering companies. Now, they have significantly changed the identity verification rules. However, it is worth noting that these changes have only been proposed in a draft document. The draft will potentially be finalised after the enactment of a new statutory instrument, Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.

Here are the additional resources that will need to be provided for identity verification checks under the new rules:

• A valid email address that the company is using as their main email must be submitted to Companies House
• Current residential address
• Valid evidence for proof of identity which cannot be expired
• The identity must have available biometric or photographic evidence to compare against the individual

The new draft is present in Regulation 5 of the Registrar Regulations 2024 draft statutory instrument. The date for the new rules of identity verification has not been published. However, it will come into effect after the Identity Verification regime is confirmed.

Routes to Register

There are three routes for the identity verification process. Here is a detailed explanation of identity verification routes:

Using gov.uk ID Check Application

One process can be visiting the website and registering your company. You will need:

• Passport with biometric chip
• UK photocard driving license
• UK biometric residence permit
• UK frontier worker permit

Using One Login

The One Login service helps you change your details and verify your identity. So, you can do to One Login system where you will need:

• UK passport
• UK photocard driving license

At the Post Office

If you do not want to take the online route, the identity verification process can also be done at the post office. Here are what you will need:

• Passport with biometric chip
• Passport without biometric chip for supported countries
• UK/ EU photocard driving license
• UK biometric residence permit
• National identity photocard from EEA country, standardised chipped biometric cards only

If these options are not viable, there are alternative options to verify your identity. Any photo ID listed on the Public Register of Authentic Identity and Travel Documents (PRADO), such as a driver's license or national identity, will be accepted. If these options are not available, a marriage certificate, birth certificate, immigration document, or bank statement is also accepted.

Conclusion

Companies House has published a draft for the identity verification process for registering a company. The compliance rules are much tighter this time, hoping to prevent fraudulent companies from registering. Although the penalty for non-compliance has not been confirmed, it will most probably be published along with the final Identity Verification regime.