Third-party agencies are cashing in on Companies House’s glitch-ridden ID checking process for directors by carrying out the free checks for hundreds of pounds in fees.
One of the firms, previously endorsed by Companies House, is charging £840 for an ‘executive’ process with a ‘verification officer’ providing ‘tailored professional support’.
It comes as reports emerge of innocent people being falsely installed as directors of bogus firms as a result of identity theft – the situation the checks purportedly aimed to stop.
In November, it became mandatory for all directors to undergo ID checks before filing accounts or documents for firms they manage. But Companies House revealed only three million people had completed the checks so far – less than half of the country’s seven million directors.
One issue is the clunky One Login digital system used to carry out the checks. It has created a gap for fee-hungry third-party firms to step in.
One of those is Elemental CoSec, which boasts of trading for 12 years in 108 countries.
Cashing in: Third-party agencies are exploiting Companies House’s glitch-ridden ID checking process for directors
Registered in Camden, North London, it charges £700 plus VAT for its ‘executive’ package and £150 for an online-only package where people still have to complete the checks themselves but can call a helpline for telephone support.
Elemental, founded by solicitors Tobias Latham and Nick Lindsay, both fellows of the Chartered Governance Institute, says its service offers ‘best-in-class’ support.
Companies House said it ‘does not endorse’ any of those on its list of authorised agents, saying: ‘We recommend that individuals conduct their own due diligence before accessing their services’.
It added that it ‘has no power to regulate’ fees charged.
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