The process of opening a company with Companies House is to get tougher with the publication of the draft ID verification rules. Future business owners will have to meet higher ID verification requirements to reduce the risk of fake companies and rogue directors.
The rules follow the recent increase in company registration fees. The draft document awaits the Registrar's (Identity Verification and Authorised Corporate Service Providers) Regulations 2024, which outlines the new process that will be in force when the ID verification regime kicks in.
Failure to comply with these new rules will result in fines, however, the exact penalty system is yet to be confirmed. The draft legislation refers to Regulation 5 of the Registrar Regulations 2024.
Key requirements include:
- A valid email address.
- A current residential address.
- Proof of identity using unexpired photo ID listed on the Public Register of Authentic Identity and Travel Documents (PRADO), such as a driver's license or national identity card from the director's home country. If these are not available, alternative documents such as a birth certificate, immigration document, marriage certificate, or bank statement can be used.
Different rules apply if verifying through an Authorised Corporate Service Provider (ACSP). One form of biometric ID from the first list or two forms of evidence from the second list are required. A photo ID and a document to support these details is all that will be required.
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