New UK Companies House rules risk locking directors out of business
With mandatory identity verification looming and awareness critically low, Umazi warns of disruption, confusion, and soaring fees.
Millions of UK company directors could soon find themselves locked out of essential business services as sweeping new identity verification rules come into force, and the majority are still unaware the change is coming.
Under the Economic Crime and Corporate Transparency Act, every UK company director and Person of Significant Control (PSC) will be required to verify their identity before they can continue performing their legal duties. The new reform, part of the government’s drive to combat fraud, increase corporate transparency, and restore trust in the UK’s company registration system, is the most significant overhaul of Companies House in decades.
Failure to comply could have severe consequences, including companies being struck off the register, directors facing disqualification, bans on filing statutory documents, and unlimited fines.
According to Cindy van Niekerk, CEO of digital identity platform Umazi, the low level of preparedness is alarming when the clock is ticking:
“With mandatory identity verification starting on 18 November 2025, we’re counting down to a hard deadline. By mid-November 2026, 6 to 7 million directors and PSCs must have verified their identity, yet less than 300,000 have done so. This isn’t a minor administrative update. Without verification, directors may soon be unable to file accounts, appoint or resign board members, or even legally manage their companies. That could mean serious operational paralysis for thousands of businesses.”
The GOV.UK One Login is intended to make verification secure and straightforward. But a combination of poor awareness, confusing official communication, technical glitches, and multiple log-ins has already created frustration. Many directors are turning to third-party providers for help, with some charging up to £250 for what should be a quick and affordable process.
Van Niekerk warns that the reform’s good intentions could be undermined by Reform risks becoming red tape:
“The ID check should take minutes, yet we’re seeing fees ranging from £45 to £250, repeat log-ins, and even failed verification attempts. That’s turning a compliance measure into a costly burden, not the streamlined reform it was meant to be. If directors leave it too late, they could face inflated fees, lengthy delays, and ultimately lose the legal authority to act for their own companies.”
Van Niekerk concludes by warning that this is about more than ticking a legal box. With the UK’s corporate identity system often described as fragmented and open to abuse, these reforms represent a crucial chance to modernise and protect the way business identities are verified.
“This reform is about more than ticking a box for Companies House. If implemented well, it can close loopholes that have allowed fraudsters to exploit UK corporate structures for years. It’s a chance to modernise how we establish and trust business identities. But the clock is ticking, and if directors don’t act now, the very system designed to protect businesses could end up paralysing them.”