Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Do You Need To Look Through ‘The Business Lens’?
  • Enhancing Supply Chain Security: The Strategic Role of Managed Service Providers (MSPs)
  • New energy service aims to lessen strain on SME budgets
  • Meet Claudia Freed, Who Truly Knows What It Means To ‘Circle Back’
  • Dr. Karim Bahou appointed Head of Innovation at Sister, Manchester’s £1.7bn innovation district
  • Top employers 2025 announced by Working Families
  • Concrete success as Structural Repairs scoops two national business awards
  • What Does Whatsapp’s Ad Rollout Signal For Social Media And Messaging?
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Legal»Millions of UK company directors risk losing access to their own businesses
deadline 18th November

Millions of UK company directors risk losing access to their own businesses

0
Posted By sme-admin on August 21, 2025 Features, Legal

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.”

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Meet Claudia Freed, Who Truly Knows What It Means To ‘Circle Back’

The rise of the entrepreneurial lawyer – and how SMEs can benefit

Top Tips for Dealing with Common Commercial Disputes

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
Are you a Company Director?
Are you a Company Director - Verify your identity
Personal Pension offer
Events Calendar
    • Marketing
    October 14, 2025

    Do You Need To Look Through ‘The Business Lens’?

    October 10, 2025

    What Does Whatsapp’s Ad Rollout Signal For Social Media And Messaging?

    • Finance
    October 14, 2025

    New energy service aims to lessen strain on SME budgets

    October 8, 2025

    An Online Test For Trying Out An Employee-Ownership Trust

    • People
    October 13, 2025

    Dr. Karim Bahou appointed Head of Innovation at Sister, Manchester’s £1.7bn innovation district

    September 30, 2025

    Allergen Free For The Win: Ceo Of Inclusive Food Brand Announced As Best Business Woman

    • Health & Safety
    September 18, 2025

    Lessons From Grenfell Are Still Being Learned

    September 2, 2025

    1 in 3 employees anxious about lack of first aiders at work

    • Events
    October 10, 2025

    Nominations Now Open for UK’s Top 100 Businesses – EB100 2026

    October 8, 2025

    The Solopreneur Awards 2025: The Audacity Era

    • Community
    September 18, 2025

    ClearCourse appoints new Chair of the Board, Simon Black

    September 18, 2025

    Raising Money Where It’s Needed: Westspring Pledges To Raise £50,000 For Charity

    • Food & Drink
    October 9, 2025

    Leading Allergy Campaigner Supports Call For New Food Allergens To Be Added To Uk’s ‘Top 14’ List

    October 3, 2025

    Small Teams, Strong Breaks: The SME Guide to a Better Coffee Point

    • Books
    September 3, 2025

    New book on conquering fear of public speaking

    August 7, 2025

    Learning to Leave a Legacy in Business

    The Newsletter

    Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

    Sign Up
    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • People
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.