Companies House initiates new powers to combat fraud

Recently, UK banks were alerted about potentially fraudulent company filings. As a result, Companies house have introduced changes aim to improve the quality of data and prevent fraud within the companies’ register.

There are several changes that you need to be aware of including:

Scrutiny and Evidence: Companies House now has more power to examine information closely. They can ask for evidence and fix any mistakes.

Company Names: Stricter checks on company names are in place. This helps prevent misuse of personal information. If a company name is inaccurate, it can be removed.

Registered Office Addresses: No more PO boxes! Companies can’t use them as their official address anymore. Instead, they need a proper physical address.

Email Addresses: All companies must provide a registered email address. This ensures secure and traceable communication.

Purpose Confirmation: When forming a company, subscribers must confirm its lawful purpose. Later, they need to state the intended lawful activities.

Data Sharing: Companies House can now share data with government departments and law enforcement agencies.

These changes mark the first phase of new powers adopted by companies house and will enable the government and law enforcement agencies to better combat economic crime. Further enhancements including identity verification and accounts reform are in the pipeline, but these acts are to be introduced over a longer period of time. This phased approach aims to minimise disruptions for legitimate businesses and companies house will be keeping businesses informed as new measures are introduced.