The rules mean that in future potential business owners will have to follow much stricter requirements to prove their identity when setting up a company, which could stem the risk of fraudulent companies being created and rogue directors taking advantage of the system.

The latest development came after Companies House increased the cost of company registrations earlier this year.

This is a draft document as Companies House is waiting for the final enactment of a new statutory instrument, Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.