Context
Companies House has warned Directors to verify their identities following the first Insolvency Service prosecutions. The Court action highlights the legal duty on Directors to complete identity verification. 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.
Key points to note and next actions
- Newly appointed directors have been required to verify their identity with Companies House before acting as a director from 18 November 2025.
- Existing directors are required to verify during the 12-month transition period, when filing the company’s next confirmation statement.
- This is the first court action for identity verification offences brought by the Insolvency Service. Three Directors were fined after failing to comply with requirements.
- The convictions serve as a warning to Directors: verify your identity or risk prosecution. The fines, however, were (including costs and ‘victim surcharges’) £317, £515, and £197!
- Identity verification can be completed online through Companies House free of charge, or via an Authorised Corporate Service Provider.