Company Strike-Offs on Teesside Rise Sharply Ahead of Director Identity Verification...

Companies House Introduced the new Identity Checks recently & its having a profound effect on the number of businesses being dissolved

Businesses on the Companies House Register begin to Disappear, as Director Identity Verification Comes Into Force...

23rd December 2025

A significant increase in the number of businesses being struck off the Companies House register has been recorded in recent months, with growing evidence that many businesses being dissolved are being carried out in anticipation of the UK’s new director identity verification regime...

The changes form part of the government’s wider reforms to corporate transparency and economic crime enforcement, requiring all company directors and persons with significant control (PSCs) to undergo formal identity checks. While the stated aim is to improve trust and accountability in the UK business register, the timing and scale of recent voluntary dissolutions of businesses is said to be raising legitimate questions about the real-world impact of these measures.

Voluntary Dissolutions Ahead of Identity Checks

A noticeable pattern has now emerged involving companies voluntarily dissolving their businesses shortly before identity verification deadlines fall due. In several cases examined this month alone, several Hartlepool companies have been struck off the Companies House Register where identity checks were either pending or already overdue.

Notably, The Teesside & Durham Post found that at least six companies registered with an address in Hartlepool had been dissolved in the past month which were linked to directors who were foreign nationals residing in the UK. In each instance, the companies were dissolved voluntarily rather than through compulsory strike-off, suggesting a conscious decision to exit the register rather than comply with the new verification requirements or see any assets forfeited to the crown through a compulsory strike off.

While there is nothing unlawful about a voluntary dissolution in itself, the clustering of such closures around the introduction of identity checks is, according to some, difficult to ignore.

Foreign Nationals and Compliance Pressures

The reforms apply equally to UK and non-UK nationals, but directors who are foreign nationals may face additional administrative or practical hurdles when attempting to verify their identity, particularly where documentation, digital access, or third-party verification services are involved.

For some small businesses, especially single-director companies, the cost, complexity, or perceived risk of non-compliance may outweigh the benefits of continuing to trade through a limited company structure. This appears to be especially true where companies are dormant, marginally active, or no longer commercially viable.

However, critics argue the system may be unintentionally encouraging the quiet removal of companies from the register rather than actually improving transparency within it.

The central question appears to be whether the new identity regime is achieving its intended objective. While tighter controls may deter fraud and misuse of corporate structures, the early evidence suggests it may also be prompting businesses to simply 'disappear' from the public record altogether.

A dissolved company leaves behind limited scrutiny, particularly where no investigation, enforcement action, or identity verification ever takes place. In such cases, the register becomes “cleaner” in appearance, but potentially poorer in accountability. There's also concern that repeated cycles of dissolution and re-incorporation could become an unintended consequence of the reforms, undermining long-term transparency.

As identity verification becomes fully embedded within Companies House processes, further data will be needed to determine whether this spike in strike-offs is temporary or indicative of a broader structural shift.

What's already clear is that the reforms are having a behavioural impact. Whether that impact strengthens the integrity of the UK corporate system—or simply drives certain directors out of it—remains an open and important question.

For now, the rising number of voluntary dissolutions, particularly involving foreign national directors is seemingly on the increase, whether that leads to better accountability is another question.