Companies House Identity Verification
Identity Verification (IDV) is now mandatory in the UK for all Individual Company Directors and Persons with Significant Control (PSCs) of companies registered in England and Wales (E&W). It is the personal responsibility of all Individual Directors or PSCs of E&W companies to prove to Companies House that they are who they say they are.
The IDV process only has to be performed once per individual, regardless of the number of directorships and/or PSC roles that an individual holds. On successful completion of the IDV process, Companies House will issue the individual with a unique 11-digit Companies House Personal Code.
Individuals are not permitted to incorporate an E&W company, be appointed as a new Director or register as a new PSC without submitting a Personal Code to Companies House. It is a criminal offence to act as an Individual Director or PSC without having complied with the IDV requirements.
While UK resident directors or PSCs are permitted to verify their identities online using specified photo ID documentation via their GOV.UK one login, Companies House requires non-UK resident directors or PSCs to verify their identity through an Authorised Corporate Service Provider (ACSP).
The UK Register of Overseas Entities (ROE)
The Register of Overseas Entities (ROE) was introduced to increase transparency around foreign owners of UK property to combat financial crime and money laundering. It applies to all non-UK legal entities (Overseas Entities) that hold, or intend to buy, sell or transfer qualifying UK property.
Held at Companies House, which serves as Registrar, the ROE is a public register that requires all in-scope Overseas Entities that own land or property in the UK to register by providing detailed information about the entity, its beneficial owners or its managing officers, and any trusts in the ownership chain. They are also required to update this information annually.
All filings on the ROE must first be verified by an authorised agent of Companies House. Sovereign Corporate & Trustee Services (Sovereign) is an Assured Agent of Companies House and can assist Overseas Entities that hold or wish to hold UK land, both with their initial registration and verification on the ROE, as well as with filing annual Update Statements and verifying any changes.
Once registered on the ROE, Companies House will issue the Overseas Entity (OE) with a unique identification number ID (OE ID). This number is required by the Land Registry in respect of many transactions involving UK property, including purchases, sales and leases.
Setting up the right company in the UK
Incorporation provides many advantages for a business and its owners: protection from personal liability for business debts, improved access to financing for business activities, simple transfer of business ownership through the disposal of shares and increased potential for tax planning through access to corporation tax rates and international tax treaties.
A company is tax resident in the UK if its business is managed and controlled in the UK. However, its operations are not subject to any geographical limitation; a UK company is free to trade and engage with third parties worldwide.
There is no restriction on the nationality or country of residence of the ultimate beneficial owner(s) of a UK company and corporate ownership is also permitted. Private UK-registered companies must have at least one company director (public companies require two). The 2006 Companies Act stipulates that at least one of the company directors must be a natural person, i.e. an individual.
Choosing a name for your business is a process that you need to get right. Being objective and choosing the company name that best reflects your business strategy is valuable, especially as your business develops.
Sovereign can provide advice on:
- The type of company best suited to your commercial purpose.
- Arranging the ownership of that company.
- Administering the company correctly.
- Managing its commercial arrangements.
In addition to the company formation process, we can further provide the administrative support to maximise opportunities and achieve long-term sustainability, from full back-office solutions to assistance with tax and regulatory compliance. This includes accountancy, human resources, pensions, insurance, trademark and intellectual property protection, obtaining local licences and permits, business bank accounts, executive relocation and specialist tax advice.
Why set up your company in the UK
The UK continues to be the number one destination for attracting foreign direct investment in Europe, and third globally after the US and China. There are no currency or exchange controls or restrictions on foreign investment. The UK also offers a world-class skills base, Europe’s strongest research and development environment, a proven long-term return on investment for international businesses and an excellent quality of life.
The structure you choose will have significant implications on the amount of tax you pay, the extent of your personal liability, the amount of administrative work involved and your ability to raise finance. Starting out with the wrong set-up can lead to a lot of complications later.
Sovereign can help you navigate through all of the complexities of the company registration process. For more information on how we can help you set up your business in the UK please read on. If you would like to know more about the private client services we offer, including assistance with property purchases, setting up of trusts and moving to the UK, please click here.
Why incorporate with Sovereign?
With over three decades of experience in the corporate services field, Sovereign UK’s services include forming new corporate structures, reorganising corporate structures and repatriating earnings. We also provide the necessary expertise in administering and managing companies, including company law, board procedures, director responsibilities and shareholder relations, and financial and corporate compliance requirements.
Following incorporation, Sovereign can provide on-going domiciliary services of the highest quality to maintain your company’s good standing in the UK. This includes the provision of registered office facilities and (if required) nominee shareholder services, together with making annual filings to Companies House. A company secretary is not obligatory for private companies under UK law but company secretarial services can be provided where required.
Re-mailing and virtual office services are available for all companies established by Sovereign. Registered office facilities are provided as part of the domiciliary service from our dedicated corporate services centre in Chester. A central London registered office address is also available, if required, subject to an annual premium of £500.
Sovereign further provides directors for many of the companies that we incorporate in order to ensure that their affairs can be properly managed and controlled from their place of incorporation. This service is often combined with our other company management and / or our domiciliation services.
Our directors are required to meet their directors’ duties, which require them to exercise independent judgment. It is a condition of any appointment that the director(s) are able to exercise their independent judgement and are fully involved in any decision. Under certain circumstances Sovereign can provide corporate and personal directors that are based offshore.
Sovereign is well-placed to assist corporate clients, particularly those from outside the UK, in creating ‘economic substance’ in the UK. These services can include office provision, introduction to property sourcing specialists, estate agents, chambers of commerce, government agencies and other third-party providers.
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