The UK’s corporate register is expected to shrink significantly over the next year as new identity verification rules for company directors and beneficial owners come into force on Tuesday, according to specialists in corporate transparency and financial crime.
From 18 November, all new directors and persons with significant control (PSCs) must verify their identity with Companies House before they can form or run a company. Existing directors and PSCs will be phased into the system over the next 12 months, completing verification when they next file a confirmation statement. Acting as a director without verification will become a criminal offence.
The reforms are aimed at tackling fraud, money laundering and the misuse of shell companies by ensuring that “the people setting up, running and controlling companies are who they say they are,” Companies House said. More than one million people have already verified their identities, with up to seven million more expected to complete the process over the next year.
But experts say the immediate impact will be visible in the number of new incorporations — and the size of the UK company register more broadly.
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