It comes ahead of new identity verification rules set to take effect later this year under the Economic Crime and Corporate Transparency Act 2023.
The regulations will require directors and people with significant control (PSCs) over limited companies to verify their identities through Companies House in a bid to prevent the misuse of companies for illegal activities.
Lindsay Farrer, a partner at Cumbria-based Saint & Co Chartered Accountants, is recommending businesses act now to verify their identities to avoid delays or complications.
She said: “We strongly advise our clients to start the identity verification process as soon as possible.
“Early action will help avoid any last-minute rush and ensure that all necessary steps are completed in time.
“This proactive approach will not only help businesses comply with the new regulations but also prevent any disruptions to their operations.”
The process is expected to become mandatory in the autumn and is described as following a similar process to applying for a new passport.
Failure to comply could lead to delays, financial penalties or restrictions on forming new companies.
The accountancy firm says Government guidelines have outlined three methods for completing the verification process.
Method one is online via the GOV.UK One Login system, which requires valid identification documents.
This is being touted as the recommended course of action.
Option two is in person at selected Post Offices, but this option is only available to UK residents and requires initial registration through the Companies House service to determine eligibility.
The third option will allow businesses to use a Companies House-authorised third-party service provider, though this route is not yet available.
The process involves two steps: receiving a personal code from Companies House and linking the verified identity to the company’s official records.
Ms Farrer said: “It’s really important businesses comply because failure to do so may prevent you starting a new company or result in a financial penalty.”
Saint & Co, which operates nine offices across Cumbria, is offering support to businesses to help them navigate the verification process.
The accountancy firm can be contacted on 01228 534371 or via email at advice@saint.co.uk.
Saint & Co have bases in Carlisle, Ambleside, Cockermouth, Penrith, Wigton, Millom, Annan, and Dumfries.
More information on the new regulations and the verification process is available on the Companies House website
