Mandatory ID Verification introduced by the UK Registrar
In an effort to combat fraud, UK's official registrar of companies, is set to introduce mandatory identity verification for all company directors. This aims to improve the accuracy and integrity of company records, ensuring that individuals behind businesses are who they claim to be. The new requirement, which will roll out on the 17th September 2025, is set to enhance the trustworthiness of the UK businesses.
Background of the Reform
The rise in fraudulent activities, including "ghost" companies created by criminals or individuals with ill intentions, has raised significant concerns. In particular, the misuse of companies for money laundering, tax evasion, and other illicit activities has been a growing problem. In response, the UK government has introduced this identity verification scheme is aimed at tackling economic crime.
What Does the New System Involve?
Under the new system, all individuals intending to be appointed as Directors and PSC's of a company will be required to submit verified proof of identity. The verification process involves submitting official identification documents such as passports and proof of address documents such as a Bank Statement. These documents will be checked against existing databases to confirm the authenticity of the individual. Individuals will also be requested to complete a short liveness check (similar to a selfie)
This will also apply to individuals who are Directors and PSC's of already existing companies, who will be required to verify their identity by a set deadline. While this will be a mandatory requirement for all new Directors and PSC's, current directors will be given sufficient time to comply with the new rules.
Once an individual has verified their identity, Companies House will issue them with a unique verification code, which can be used for any future UK Company Formations and Company Filings. You are able to enter this code when placing an order on our website which will give you exemption of completing the verification process again.
How Will the Verification Process Work with UK Company Formations?
If an officer has already verified their identity with Companies House, they may provide their Companies House verification code when placing a UK Formation or Shelf Company order. In these cases, they will be exempt from completing SumSub, and CFS will request the necessary identification documents via email instead.
CFS Formations are partnered with a trusted, Government verified ID Verification software provider known as SumSub. We will be implementing their software into our UK Company Formations and directing officers to their platform to verify their identity.
SumSub allows us to make the ID Verification process as quick as possible, as their software can verify an individual’s identity in less than 5 minutes.
Click Here to read more about SumSub and their platform.
We aim to make the verification as straightforward as possible. Once you have placed your order for your chosen package, you will be directed to a page listing the company officers that are required to complete ID Verification. There will be a link provided to SumSub that the officer needs to follow. If the officer is not able to complete ID Verification at the time of the order, the incorporation will be placed on your CFS Dashboard on hold. Next to the company listing will be a green proceed button, which upon selecting will direct you back to the ID Verification page.
Once verified, the director will receive a confirmation, and their verified identity will be recorded with the relevant company information and the company details will be filed for incorporation.
Other useful Information:
CFS Formations thrive to advise our clients of any new/upcoming changes as soon as possible, and we will continue to update our Help and Guidance pages with any new information we receive regarding the new company laws.
Our website will soon be updated to comply with the new legalisation and information required for incorporations/filings. You will have the peace of mind that, by using our system, your company will be setup correctly and in accordance with all new measures and laws.
Please do not hesitate to contact us should you have any concerns or questions regarding the new company laws, and one of our friendly UK Specialists will be more than happy to help.
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