More powers for Companies House

The Economic Crime and Corporate Transparency Act 2023 is scheduled to bring in a number of changes over the next few years. The act has reformed the statutory role and powers of the Registrar of Companies. The registrar is now a more active gatekeeper over company creation and a custodian of more reliable information on the register.

To date we have seen the introduction of the following changes:

• the requirement for all Companies to have an e-mail address registered at Companies House;
• a new statement of lawful future activities on the confirmation statement; and
• the requirement that all registered offices must be appropriate – this essentially outlaws the use of PO Box addresses.

The next phase of the Act being brought in is enforcement and sanctions. Companies House will be targeting repeat offenders who fail to comply with registration rules and they have the power to issue fines of up to £2,000.

Penalties will start at £250 for the first offence of a minor nature, rising to £2,000 for repeat offenders who repeatedly ignore the registration rules.

Companies House 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.

These new powers for Companies House include much tougher oversight of the register of companies. This includes the following measures:

• Ensure that anyone who is required to deliver a document to the registrar does so (and that the requirements for proper delivery are complied with);
• Ensure information contained in the register is accurate and all information required is disclosed;
• Records kept by the registrar must not create a false or misleading impression to members of the public; and
• Prevent companies and others from carrying out unlawful activities, or facilitating others to carry out unlawful activities.

Companies will not receive a financial penalty if they take the required action within 28 days beginning the day after the date of the penalty warning notice.

Whilst this legislation is aimed at those who are acting illegally, innocent parties could get caught if you fail to act or respond to a request from Companies House. Please bear this in mind and do get in touch with me or your usual Albert Goodman contact if you have any queries on this matter.

Further changes regarding identity verification are being brought in in 2025 and we will bring you more on this next year.