UK Company Registrations Fall Sharply After New Anti-Fraud Rules Take Effect

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New company registrations in the UK have fallen by around 30% since the introduction of identity verification rules at Companies House, indicating the impact of new anti-fraud reforms.

Since November 2025, all new company directors and beneficial owners in the UK have been required to verify their identity, with acting as an unverified director now classified as a criminal offense. 

These measures are designed to address long-running concerns regarding the misuse of the UK’s company register for financial crimes, including money laundering and fraud.

According to The Times, there were 18,199 incorporations in the week before the rules took effect in November. This figure then declined to fewer than 13,000 in each of the five weeks before Christmas.

The sharp fall suggests a significant issue with fraudulent companies and directors having previously registered with the UK’s Companies House. However, these reforms do not tackle loopholes such as owners paying fake directors to register with Companies House, or the use of fake or implausible addresses for businesses in the UK.    

The reforms will also apply to existing directors and owners in the UK over the next year.