Companies House is entering a new era of enforcement as it begins making greater use of the powers granted under the Economic Crime and Corporate Transparency Act. The aim is to improve the accuracy of the Companies House register, strengthen confidence in UK businesses and help tackle economic crime.
For many years, Companies House acted primarily as a recipient of information submitted by companies. Under the new regime, it is taking a more proactive role in reviewing information, challenging inaccuracies and investigating suspicious filings. This means company directors can expect greater scrutiny of the information held on the public register.
As part of its latest business plan, Companies House has confirmed that it intends to carry out hundreds of thousands of compliance and enforcement actions. These activities may include querying information that appears inaccurate, removing incorrect data and taking action against those who deliberately misuse the register.
For small business owners, the message is straightforward. It is becoming increasingly important to ensure that all company information is accurate, complete and up to date. This includes details relating to directors, people with significant control, registered office addresses and annual confirmation statements.
The introduction of identity verification requirements is another important part of the reforms. Directors and certain other individuals connected with companies will need to verify their identity, helping to improve the reliability of information held by Companies House.
While the vast majority of small businesses operate honestly and have nothing to fear from these changes, greater enforcement activity means that errors and omissions are more likely to be identified. What may once have been regarded as an administrative oversight could now attract unwanted attention and require corrective action.
Business owners should therefore take the opportunity to review their company records and ensure that all filings are accurate and submitted on time. A little attention now may help avoid unnecessary complications in the future.