Companies House identity verification: the complete guide for UK directors

Why Companies House Identity Verification is Important

Companies House is implementing new measures to improve the accuracy and reliability of the information held on the public register. Identity verification is a key part of this effort, aiming to prevent the misuse of companies for criminal activities like fraud and money laundering. By verifying the identity of directors, Companies House can ensure that the people listed as controlling companies are who they say they are. This helps to build trust and confidence in the UK business landscape.

Who Needs to Verify Their Identity?

All new and existing company directors & PSCs of UK companies are required to verify their identity with Companies House. This includes directors of private limited companies, public limited companies (PLCs), and other company types registered in the UK. The requirement applies to every individual appointed as a director, regardless of their nationality or country of residence.

It's important to note that this verification is for individuals in director roles. Other company officers, such as company secretaries, are not currently subject to the same mandatory identity verification process, unless they also hold a director role.

The Identity Verification Process

Companies House offers two main ways to verify your identity: directly through their online service or through an authorised third-party agent. Most small business owners will use the direct online service.

What you'll need

Before you start, gather the following:

• A valid email address: This will be used for communication and to set up your Companies House account.
• A UK mobile phone number: For security checks and two-factor authentication.
• Your UK driving licence or UK passport: These are the primary forms of identification accepted for the digital verification process. Make sure they are current and not expired.
• A device with a camera: You'll need a smartphone, tablet, or computer with a webcam to take a photo of your ID and a 'liveness' selfie during the process.

Step-by-step guide

The process is generally straightforward and can be completed online:

1. Create a Companies House account: If you don't already have one, you'll need to register for a Companies House account. This involves providing your email address and setting up a password.
2. Access the identity verification service: Once logged in, navigate to the identity verification section. You'll usually find a prompt or link to start the process.
3. Choose your verification method: Select the direct online verification method.
4. Enter your personal details: Provide your full name, date of birth, and National Insurance number.
5. Scan your ID: You will be prompted to use your device's camera to scan your UK driving licence or UK passport. Follow the on-screen instructions carefully to ensure a clear scan.
6. Take a 'liveness' selfie: The system will ask you to take a selfie to match your face to your ID document. This often involves moving your head slightly or blinking to prove you are a live person.
7. Confirm and submit: Review all the information you've provided. Once you're satisfied, submit your verification request.
8. Receive confirmation: Companies House will process your application and send you an email confirmation once your identity has been successfully verified. This can take a few days.

Deadlines and What Happens if You Don't Verify

There isn't a single, universal deadline for all existing directors, as the implementation is being phased in. However, new directors appointed after the relevant legislation came into force must verify their identity. Companies House will communicate directly with companies and directors regarding specific deadlines for existing appointments.

Failing to verify your identity when required can lead to serious consequences. Companies House has powers to take enforcement action, which could include:

• Financial penalties: Fines may be issued to directors who do not comply.
• Prosecution: In more severe cases, directors could face prosecution.
• Company strike-off: Ultimately, persistent non-compliance could lead to the company being struck off the register, meaning it ceases to legally exist.

It's crucial to respond promptly to any communication from Companies House regarding identity verification to avoid these issues.

Common mistakes

• Using expired ID: Ensure your passport or driving licence is valid and in date.
• Poor quality scans/photos: Blurry images of your ID or unclear selfies can lead to rejection and delays.
• Incorrect personal details: Double-check your name, date of birth, and National Insurance number match your official records.
• Ignoring Companies House communications: Don't dismiss emails or letters about verification; they contain important deadlines and instructions.
• Assuming someone else will do it: Identity verification is a personal responsibility for each director.