Digital modernisation of Companies House to 'transform' business verification

The government has today announced a reform of the UK’s register of company information in a bid to clamp down on fraud and money laundering.

To facilitate the new identity verification requirement, Companies House aims to develop a new 24/7 digital verification process.

Under the plans, directors will not be able to be appointed until their identity has been verified by Companies House.

The changes aim to increase the reliability of the data showing who is behind each company, as well as improving the ability of law enforcement agencies, such as the National Crime Agency.

Minister for Corporate Responsibility, Lord Callanan, commented: “We are committed to making the UK the best place in the world to start and grow a business.

“The reforms we are making to the Companies House register will provide businesses with greater confidence in their transactions.

“Mandatory identity verification will mean criminals have no place to hide – allowing us to clamp down on fraud and money laundering and ensure people cannot manipulate the UK market for their own financial gain, whilst ensuring for the majority that the processes for setting up and running a company remain quick and easy.”

Louise Smyth, chief executive of Companies House, added: “We are pleased that these significant and far-reaching changes are being announced.

“We know how valuable our data is, not just to businesses but to law enforcement and these reforms will unlock that value even further.

“Driving confidence in the UK economy is at the very heart of our plans to modernise Companies House, and we already have a substantial transformation programme in place to bring the government’s ambition to life.”