Companies House releases draft ID verification rules
Will Drysdale, Reporter, Accountancy Daily
The process to open a company through Companies House is going to become harder as draft ID verification compliance rules are published
The rules mean that in future potential business owners will have to follow much stricter requirements to prove their identity when setting up a company, which could stem the risk of fraudulent companies being created and rogue directors taking advantage of the system.
The latest development came after Companies House increased the cost of company registrations earlier this year.
This is a draft document as Companies House is waiting for the final enactment of a new statutory instrument, Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.
A date for the introduction of the new identification process has not been confirmed but it will come into force when the identity verification regime comes into effect.
Failure to comply with the new rules will be subject to fines for non-compliance according to the draft legislation, but the penalty system has still to be confirmed.
The new draft relates to Regulation 5 of the Registrar Regulations 2024 draft statutory instrument.
The first demand on the new rules is that a valid email address be submitted that the registrar is using as their main email. A current residential address is also required to be submitted.
Along with these, evidence needs to be provided for proof of identity, which cannot be expired and ‘where available biometric or photographic evidence that can be compared against the individual must be provided’.
This can be done through three routes which are detailed in the table below.
| Using gov.uk ID Check app | Using One Login | At post office |
| Passport with biometric chip | UK passport | Passport with biometric chip |
| UK photocard driving licence | UK photocard driving licence | Passport without biometric chip, supported countries |
| UK biometric residence permit | UK / EU photocard driving licence | |
| UK biometric residence card | UK biometric residence permit | |
| UK frontier worker permit | National identity photocard from EEA country, standardised chipped biometric cards only |
When these options are not available for the applicant there are alternative options, designated into groups.
Firstly, photo ID that is listed on the public register of authentic identity and travel documents (PRADO), such as a driving license or national identity card from the director’s home country will be accepted.
The second method, if none of these options is available, is a birth certificate, immigration document, marriage certificate or bank statement.
People who are applying to verify their identity through an Authorised Corporate Service Provider (ACSP) must use options from a separate list. This includes a list of biometric options for option one, with just one form of ID needed.
List two requires two forms of evidence if none of the options are accessible to the individual from the first list. A valid photo ID along with a document verifying these details is all that is needed.
Companies House, Draft Registrar’s Rules under Regulation 6, IDV and ACSP SI 2024
