Registered companies are being warned to keep on top of their responsibilities ahead of new penalties being applied.
Companies House will support businesses to comply with their legal obligations, for example the requirement to file a confirmation statement on time. However, those that ignore warnings could face a financial penalty.
More serious offences could result in civil action, director disqualification or potentially even criminal prosecution. Companies House says it will work to investigate and prosecute offences in partnership with the Insolvency Service and other enforcement partners. If convicted, a director could end up with a criminal record.
Companies House will also work with these enforcement partners to share intelligence, refer cases and promote holistic enforcement action when appropriate. The wider approach to enforcement is set out in the Companies House enforcement policy.
The new regime is the latest stage in the implementation of the Economic Crime and Corporate Transparency Act 2023 which gave Companies House greater powers to help improve corporate transparency and tackle economic crime.
Director of Intelligence and Law Enforcement Liaison at Companies House, Martin Swain, said:
“The introduction of these new penalties marks another significant step forward for Companies House and our transformation.
“Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us.
“We’ll take a consistent and proportionate approach to these new powers to firmly, but fairly, enforce the law. This will improve the quality of the data on our registers and help us play greater role in identifying, disrupting and preventing economic crime.”
Director of Legal Services at Insolvency Service, Jonathan Lupton, said:
“We are committed to working collaboratively with Companies House to help improve the integrity and transparency of the data on its register.
“Where it is appropriate and proportionate to do so, and as part of our overall approach to tackling economic crime and wrongdoing, we will utilise the powers available to us to take enforcement action against misconduct on the register.”
