In an effort to enhance compliance, Companies House is rolling out a new regime with stricter penalties for those who fail to meet their obligations. This initiative aims to improve the accuracy of the UK company register and prevent its misuse.
Companies are being urged to stay on top of their legal responsibilities, particularly with the upcoming penalties for non-compliance. While Companies House will offer support to businesses to meet requirements – such as timely submission of confirmation statements – those that ignore warnings may face financial penalties.
For more serious infractions, consequences could include civil action, director disqualification, or even criminal prosecution. Companies House, working alongside the Insolvency Service and other enforcement bodies, will investigate and prosecute offences. Directors found guilty could face criminal records.
Additionally, Companies House will collaborate with these enforcement partners to share intelligence, refer cases, and coordinate broader enforcement efforts when needed. This approach aligns with the Companies House enforcement policy.
These new measures are part of the broader implementation of the Economic Crime and Corporate Transparency Act 2023, which has granted Companies House enhanced powers to increase corporate transparency and combat economic crime.
Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, emphasised the significance of these new penalties, stating:
“These penalties represent a key milestone in our transformation. If guidance and support fail to ensure compliance or deter misuse, we will not hesitate to enforce the law. We will apply these powers consistently and fairly, which will enhance the quality of data on our registers and strengthen our role in addressing economic crime.”
Jonathan Lupton, Director of Legal Services at the Insolvency Service, added:
“We are committed to working closely with Companies House to enhance the integrity and transparency of its data. Where necessary, we will take enforcement action as part of our broader efforts to tackle economic crime and misconduct on the register.”
