A Crackdown on Registration Rule Violations
Companies House is set to implement stricter penalties for businesses that fail to comply with registration rules. As part of the Economic Crime and Corporate Transparency Act 2023, repeat offenders could face fines of up to £2,000.
Penalties and Consequences
The new penalties aim to deter non-compliance and improve the accuracy of company information. While minor offenses may result in a fixed penalty of £250, repeated violations could lead to fines of up to £2,000. More serious offenses could result in civil action, director disqualification, or even criminal prosecution.
Companies House’s Enhanced Oversight
Companies House will work closely with the Insolvency Service and other enforcement partners to investigate and prosecute offenses. If convicted, a director could face a criminal record.
Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, emphasised the importance of these new powers in ensuring the accuracy and integrity of the company register. He stated, “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.”
Key Measures to Improve Oversight
Companies House will now have the power to:
- Ensure timely delivery of documents to the registrar.
- Verify the accuracy of information contained in the register.
- Prevent companies from engaging in unlawful activities.
Avoiding Penalties
Companies can avoid financial penalties by taking the required action within 28 days of receiving a penalty warning notice.
Our Conclusion
The introduction of tougher penalties marks a significant step forward in Companies House’s efforts to combat economic crime and ensure the integrity of the company register.
By enforcing compliance and improving data accuracy, these measures aim to create a more transparent and trustworthy business environment.
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