“Business Passport” Could Slash Startup Paperwork

Setting up a business in the UK is one of the biggest hurdles a company can face, which is surprising for a country that prides itself on being a hub for innovation and entrepreneurship. This is according to research conducted by Umazi, a leader in digital identity and verification solutions.

The research and findings draw on polling data from 500 UK-based SMEs operating within Finance, Professional Services, and Technology—including accountancy firms, law firms, and tech and fintech start-ups. The research was commissioned in February 2025 to gain a current snapshot of the verification challenges and fraud risks facing UK businesses today.

Key findings include:

• Business setup remains burdensome: While registering a company may appear simple, 44% of UK businesses report that verification processes are still highly manual, time-consuming, and inefficient.
• Starting a company should be exciting—so why does it feel like mountains of red tape?: 

• 90% of founders had to provide the same documents up to ten times just to get going. 
• Nearly 1-in-3 say endless paperwork will be their biggest hurdle this year. 
• 88% want a “trust-stamp” that proves a company is genuine before they work together.

• An unforgiving economic climate: Top challenges businesses expect in 2025 include increased taxation (46%), rising cost of living (42%), high inflation (42%), and growing operational costs (31%).
• Barriers to growth and finance: 30% of businesses report difficulty accessing funding, often due to the lengthy and duplicative verification requirements during onboarding and lending processes.
• Companies House alone isn’t enough: While Companies House plays a central role in company registration, it does not verify the legitimacy or control of a business, leaving the door open to impersonation and shell companies.
• Broken onboarding processes: Inconsistent business verification procedures across financial services and supply chains create friction, increase costs, and delay partnerships.
• The growing threat of business identity theft: Nearly 70% of businesses are concerned about having their data or identity stolen. 45% say new technologies to reduce identity theft would significantly support their operations.
• Perception of limited government support: Over 60% of respondents believe there is little government innovation aimed at helping businesses thrive. While 38% acknowledge that initiatives exist, most feel progress is far too slow.

Cindy van Niekerk, CEO and Founder of Umazi commented: “Our research highlights the urgent need for a digital company identity framework that enables fast, trusted, and interoperable verification across sectors. This is not just a fraud issue—it’s a barrier to growth, efficiency, and economic confidence.

“Think of it as a passport for your company. It keeps your data safe, stops fraudsters impersonating you, and means you can open a bank account or apply for a loan without re-uploading the same files over and over.”

Umazi’s solution—a secure online profile storing your certificate of incorporation, directors’ IDs and proof of address in one place—lets businesses verify once and share instantly.

How it helps SMEs

• Save time: Reclaim days or weeks spent on repetitive paperwork and form-filling.
• Stay safe: Protect your company details from identity thieves and impersonators.
• Grow faster: Prove your legitimacy quickly to new customers and suppliers.

Umazi’s latest whitepaper, Broken ID, Broken Growth: The UK’s Verification Chokehold, calls for a unified, secure and scalable approach to verifying company identities—arguing that digital company IDs will play a pivotal role in protecting the UK economy, reducing fraud, and restoring trust across supply chains and financial services.

Van Niekerk continued: “Despite increasing regulation, criminals continue to exploit gaps in the system by impersonating businesses or setting up fraudulent entities with ease. Unlike individuals, companies in the UK currently have no standardised form of digital identity—and this gap is being exploited.”

Umazi’s research makes a compelling case for the urgent implementation of a Digital Company Identity system—one that is secure, scalable, and interoperable across sectors. As the UK faces rising levels of economic crime and increasing pressure on businesses, the need for a trusted, technology-driven solution has never been greater.

Van Niekerk concludes: “With the tools, regulatory momentum, and industry support already taking shape, now is the time for coordinated action. By adopting a national DCI framework, the UK can take a decisive step toward restoring trust, improving efficiency, and safeguarding its economic future.”

The full whitepaper is available for download here: Umazi