Companies House warns directors to avoid prosecution

Directors are being warned to verify their identities with Companies House or risk prosecution after the Insolvency Service secured its first convictions for these offences.

Directors of two companies, were fined at City of London Magistrates’ Court for not verifying their identity.

Identity verification is a central part of the Economic Crime and Corporate Transparency Act 2023, which strengthened Companies House powers to improve the accuracy of the company register and tackle the misuse of UK companies for criminal purposes.

Newly appointed directors have been required to verify their identity with Companies House before acting as a director since 18 November 2025.

Existing directors are required to verify during the 12-month transition period, when filing the company’s next confirmation statement, helping to ensure that those who own and control businesses can be identified and held accountable.

There is no option to opt out. Directors who continue to act without verifying their identity risk investigation and prosecution.

Daniel Hart, Senior Criminal Lawyer at the Insolvency Service, said, “These prosecutions demonstrate that directors have responsibilities not only for their own compliance but also for ensuring unverified individuals do not continue acting as directors on behalf of a company.”

The Insolvency Service said that in both cases, multiple opportunities were provided for the directors to comply with the requirements before enforcement action was taken.

One of the prosecutions included a director who had verified his identity. He was prosecuted after failing to take reasonable steps to prevent another staff member from continuing to act as a director while unverified, despite being aware of the legal requirement.

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