Registered companies are now being urged to fulfil their legal duties promptly, particularly in the timely filing of confirmation statements, to avoid facing financial penalties or even more severe consequences.
The Economic Crime and Corporate Transparency Act 2023 has granted new powers to Companies House. These powers allow the agency to undertake civil actions, disqualify directors, and pursue criminal prosecutions in severe cases of non-compliance. Directors found guilty of offences could face criminal records, thereby emphasising the gravity of these measures.
To effectively implement these new regulations, Companies House will work in close collaboration with the Insolvency Service and other enforcement bodies. By sharing intelligence and undertaking joint enforcement actions when necessary, the agency aims to create a robust compliance framework.
Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, stated, “These new penalties mark a significant step forward for Companies House… to firmly, but fairly, enforce the law.” This statement underscores the agency’s commitment to both supporting businesses in meeting their obligations and utilising its new powers decisively when required.
The introduction of these penalties is part of a broader effort to enhance corporate transparency and combat economic crime. By strengthening the integrity of data on the UK’s company register, Companies House aims to foster a more transparent and reliable business environment.
Overall, these new penalties introduced by Companies House are poised to significantly impact corporate compliance, promoting greater transparency and bolstering efforts to tackle economic crime in the UK.