In the past two years, there have been radical changes to the role of Companies House aimed at preventing economic crime such as fraud and money laundering. The new measures will enhance the UK's reputation as a safe place to do business and prevent criminals hiding behind false information.

The changes now in place are extensive and any business wishing to set up a company in the UK whether an overseas company or UK-based must now provide reliable information and evidence to support the provenance of that information. Some of the new obligations include:

  • All companies must have a tangible address which must be maintained, a PO box will no longer be acceptable as a registered address.
  • Companies House now has the power to query the information provided and request evidence to support the information.
  • Stronger confirmation and checks on company names
  • All companies must supply a registered email address
  • Confirmation that the company is being formed for lawful purposes and confirm that any future commercial activities will be lawful
  • Companies House will be able to challenge and remove factually inaccurate information
  • There is now an ability to share data with other government departments and law enforcement agencies.

Alessandra Paduano, an associate in the Manchester office, commented "The new changes introduced create new responsibilities for Companies House in that the required documents must be delivered in the required manner and that the information contained is complete, accurate and does not create a misleading or dishonest impression to members of the public. Also that unlawful activities and assisting or facilitating others to carry out unlawful activities is prevented" Alessandra further pointed out "the tools are now available to prevent abuse of the register and stop criminals from taking advantage of the UK economy. It has been suggested that within the system for registering a company which can be done online, there should be the capacity for automatic rejection of the form if the information does not comply with the requirements"

The Government intends to continue to improve the reliability and accuracy of the information it oversees to ensure that the information has integrity and can be depended on to be accurate. The reforms to the Register will be introduced in stages. This will enable businesses to fulfil their new obligations step by step and also enable Companies House to adapt to the most substantial changes in its entire history.

Companies House has been aware of the misuse and inaccuracy of the data it holds. Criminals have been appropriating the names and addresses of people on the Register without their knowledge or consent for their own nefarious purposes. The new rules will make it easier to report such abuses.

A recent instance of inappropriate information being included by an organisation was highlighted in the Guardian newspaper which reported that the rising fashion company Shein failed to correctly identify their "person with significant control" (PSC) which is an obligation when filing the company information on the Register. Instead of identifying an individual, a company based in Singapore was entered. The misinformation was noticed by Dan Neidle, the founder of the thinktank, Tax Policy Associates, which was set up to improve the policies of the legal and tax in the UK.

Giambrone & Partners commercial lawyers point out that there are penalties for providing misinformation or failing to maintain information as changes take place within a company. Our lawyers can provide legal guidance and advice for both UK companies and foreign companies registering a new business in the UK.

Alessandra Paduano is an Associate in our Manchester office. She's a solicitor in England and Wales and a New York attorney. Alessandra's expertise extends to a variety of areas, including personal injury, civil and commercial litigation. She has a meticulous eye for detail and strong analytical skills, which, coupled with her personable approach, allow her to work efficiently and to a high standard.

She believes in establishing a good relationship with clients and strives to exceed their expectations. Alessandra understands each client has different needs and ensures that she tailors her advice and approach in acknowledgement of this.

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