Context
The Economic Crime and Corporate Transparency Act introduces a number of changes over the next few years. Companies House has outlined that one of the key aims of the act is to improve the accuracy and quality of data from its registers.
Key points to note and next actions
The act has introduced new statutory objectives for the Registrar of Companies which they must promote when performing their functions. The act also provides the registrar with a suite of new and enhanced powers, to enable them to meet their objectives.
The registrar’s objectives are:
- to 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)
- to ensure information contained in the register is accurate and that the register contains everything it ought to contain
- to ensure that records kept by the registrar do not create a false or misleading impression to members of the public
- to prevent companies and others from carrying out unlawful activities or facilitating the carrying out by others of unlawful activities
There are new rules for registered office addresses which mean companies must, at all times, have an ‘appropriate address’ as their registered office.
There’s a new requirement when you register or ‘incorporate’ a company. The subscribers to the company need to confirm they’re forming the company for a lawful purpose.
The registrar has greater powers to query and challenge information that appears to be incorrect or inconsistent with information held Companies House. In some cases, Companies House will remove information more quickly, if that information is inaccurate, incomplete, false or fraudulent. There’ll be stronger checks on company names which may give a false or misleading impression to the public. This will help improve the accuracy and quality of the data held and help to tackle the misuse of company names.
There’ll be serious consequences if a company does not respond to a formal request from Companies House for more information. This could include:
- a financial penalty
- an annotation on the company’s record
- prosecution
- There could also be serious consequences for a company if their registered office is not an appropriate address.