Stricter checks and enforcement against inaccuracy – Companies House already tidying up the record

Stricter checks and enforcement against inaccuracy – Companies House already tidying up the record

23rd April 2024

We have previously written about The Economic Crime and Corporate Transparency Act and the changes to the law surrounding requirements on companies.

As we look at the rules that have changed, it has also been reported that a well-known business in the UK (even the writers of this article have been customers of the business) has been under the spotlight for a misfiling.

Introducing measures in accuracies of Companies House Filings.

Improving the accuracy of the Companies House register has become a priority for Companies House due to the recent increase in the cases of misfiling or errors filed by companies.

One recent example is Shein UK, which has been reported as having breached company law by listing Roadget Business Pte Ltd, which is based in Singapore, as its PSC (person of significant control) and not an individual.

UK Companies are legally required to declare to Companies House the person with significant control. In some cases, another company can own the shares but it is necessary for the ultimate owner to be traceable. In the event that the company that owns the shares is registered outside of the UK then the UK company must include the ultimate beneficial owner individual as the PSC.  

It is essential for companies to adhere to these regulations to maintain transparency and accountability in their operations.  The Economic Crime and Corporate Transparency Act 2023 aims to ensure that companies make accurate filings.

Recent changes to UK Company Law

In March 2024, the first measure under The Economic Crime and Corporate Transparency Act 2023 was implemented. The following changes were introduced:

  • All companies are now required to provide a registered email address;
  • Company registrars have the authority to request information and supporting evidence;
  • Companies must have appropriate registered office address;
  • Strict measures are in place to verify company names and address any inaccuracies;
  • Directors must confirm that their company will operate lawfully and disclose its intended future activities to be lawful on the confirmation statement.

If you are unsure of your obligations under the new laws applying to your company and its compliance with them please contact our experienced Corporate Commercial team.

Article written by Corporate Commercial Solicitor Kyle Smith and Corporate Commercial Paralegal Ann George.