What Happens If a Director Does Not Verify Identity?

Companies House identity verification is now a legal requirement for UK company directors under the Economic Crime and Corporate Transparency Act. Directors who fail to complete the required verification can face problems with their company filings and may also be committing an offence if they continue acting as a director without verification.

Can a Director Act Without Verifying Identity?

A director should not continue acting as a director without completing the required identity verification.

Companies House guidance states that continuing to act as a director without verification can be an offence. The company may also be in breach if one of its directors remains unverified.

This makes identity verification more than an administrative formality.

The Confirmation Statement May Be Rejected

One of the most immediate consequences concerns the company's confirmation statement.

Before filing, the company must ensure that every relevant director has verified their identity and obtained their Companies House personal code. The personal code for each director must be included in the confirmation statement.

If a required director has not completed verification, the company may not be able to successfully file its confirmation statement.

What Happens to the Director?

A director who does not complete the required verification may face enforcement action.

Depending on the circumstances, consequences can include:

• Committing an offence by continuing to act as a director

• Financial penalties

• Restrictions connected with company filings

• Enforcement action by Companies House

• Potential prosecution in serious cases

• Problems maintaining the company's compliance position

The exact consequences depend on the circumstances and the nature of the non-compliance.

What If the Company Has Multiple Directors?

Every relevant director must complete the required identity verification.

For example, if a company has four directors and one has not verified their identity, the company may encounter problems when it tries to file its confirmation statement.

Companies should therefore check the verification status of all directors well before the filing deadline.

Can the Director Verify Later?

If a director has not yet completed verification, they should complete the process as soon as possible rather than waiting for enforcement action or a filing problem.

Once the identity verification has been completed, the director receives a Companies House personal code. This code is then used to confirm the director's verified status when required.

What If the Director Is Overseas?

Being resident outside the UK does not automatically remove the verification requirement.

Overseas-resident directors of UK companies are also subject to the relevant Companies House identity verification rules. International directors should therefore arrange verification and obtain their personal code before the applicable filing requirement arises.

Fraser Bond Director Verification Support

Fraser Bond provides practical UK company administration and compliance support for directors, property companies, overseas investors and international businesses.

Support can include Companies House identity verification administration, personal code assistance, confirmation statement support, director compliance, PSC requirements and wider UK corporate administration.

If a director has not completed identity verification and a company filing is approaching, dealing with the issue early can help prevent unnecessary compliance problems.

Do Not Wait Until the Filing Deadline

Director identity verification should be completed before it becomes a barrier to the company's confirmation statement or other required filing.

The safest approach is to verify early, obtain the Companies House personal code and make sure the company's director information is accurate before the relevant filing date.