The UK’s corporate register could shrink sharply as new director-verification rules come into force on Tuesday.
Companies House says the changes are intended to ensure the “people setting up, running and controlling companies are who they say they are,” with more than a million identities already verified and millions more to follow.
Corporate filings expert Graham Barrow told The Times: “From the 18th, I expect daily new incorporations will fall off a cliff,” adding: “Most of these companies will be linked to people who do not have the best intentions being forced to think again when faced with providing ID.”
Barrow also warned of efforts to sidestep the regime, saying: “There has already been a significant increase in British proxy directors being paid to front what are actually overseas-controlled companies.”
However, Anthony Asindi of Ashurst suggested the register may instead grow, saying a lack of clarity on enforcement may “lead to preventative verifications by shadow or de facto directors seeking to formalise their directorships.”
FTSE100
The UK's flagship share index, the FTSE 100, was up seven-points at 9,706 shortly after opening this morning.
Brent crude oil futures were down 0.47% at $63.92 a barrel.
Companies reporting
- Big Yellow Group - Half Year Results
- Ninety One - Half Year Results
- Sirius Real Estate - Half Year Results