Registered companies are being urged to stay on top of their legal duties as Companies House prepares to introduce new penalties for non-compliance.
Under the latest rules, businesses that fail to meet their obligations, such as filing a confirmation statement on time, could face financial penalties or worse.
While Companies House is committed to supporting businesses in meeting these requirements, with guidance and reminders, those who ignore warnings could face severe consequences.
Beyond financial penalties, more serious breaches may result in civil action, director disqualification, or even criminal prosecution.
In collaboration with the Insolvency Service and other enforcement agencies, Companies House will investigate and prosecute offences where necessary.
If a director is convicted of a serious offence, they could end up with a criminal record, a major repercussion for what may seem like a small administrative oversight.
The new enforcement regime
This tougher enforcement regime is part of the Economic Crime and Corporate Transparency Act 2023, which grants Companies House broader powers to enhance corporate transparency and combat economic crime.
This move is intended to ensure that companies operating in the UK maintain the integrity of the public register, helping to prevent misuse and ensuring transparency.
According to Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, these new penalties represent a significant step in their transformation.
He made it clear that while guidance and support will be provided, Companies House will not hesitate to use its new powers to enforce compliance where necessary.
Speaking on the Government website, Jonathan Lupton, Director of Legal Services at the Insolvency Service, echoed this, noting that the service is committed to working collaboratively with Companies House to maintain the transparency and integrity of the register.
He added that enforcement action would be taken when necessary to tackle misconduct.
What should you do?
If your company is due to submit its confirmation statement or other filings, it is crucial to act now.
With Companies House taking a firmer stance, ensuring you comply with all deadlines and reporting obligations is more important than ever.
For help with complying with Companies House regulations, contact us today.
