Business owners are being urged to ensure they comply with new Companies House identity verification requirements after three directors became the first to be prosecuted under the new regime.
The prosecutions, brought under powers introduced by the Economic Crime and Corporate Transparency Act 2023, mark a significant step in Companies House’ efforts to improve corporate transparency and tackle the misuse of UK companies for criminal activity.
The rules require directors to verify their identity with Companies House.
Since 18 November 2025, newly appointed directors have been required to complete verification before acting as a director.
Existing directors must complete the process during a 12-month transition period when filing their next confirmation statement.
Three directors were recently fined at City of London Magistrates’ Court. Two were prosecuted for continuing to act as directors without completing identity verification, while a third was prosecuted for failing to take reasonable steps to prevent an unverified individual from acting as a director.
All three were also prosecuted for failing to file confirmation statements on time.
Victoria Thompson, a Chartered Accountant at J F Hornby & Co, said: “Many business owners are aware that Companies House has introduced identity verification requirements, but these cases demonstrate that the authorities are now prepared to take enforcement action where directors fail to comply.
“Historically, Companies House filings have often been viewed as an administrative exercise. The new legislation signals a clear shift towards greater accountability and verification of those running and controlling UK businesses.
“For most directors, the process is straightforward, but it is important not to leave it until the last minute. Failure to comply can now result in enforcement action, financial penalties and potentially further complications for the company.”
Companies House has made it clear that identity verification is a key part of its wider reforms designed to improve the reliability of information held on the register and strengthen confidence in UK businesses.
Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said the prosecutions send a “clear message that identity verification is not
optional” and confirmed that Companies House will take appropriate enforcement action where individuals fail to meet their legal obligations.
Victoria added: “The vast majority of directors will have no difficulty meeting the new requirements, but these prosecutions should act as a reminder that compliance obligations are becoming more closely scrutinised.
“If you are unsure whether you need to verify your identity or when the requirement applies to you, it is worth seeking advice sooner rather than later.”
If you would like guidance on Companies House identity verification requirements or any aspect of company compliance, contact the team at J F Hornby & Co on 01229 588 077 or on jfh@jfhornby.com
