As part of the Economic Crime and Corporate Transparency Act 2023, Companies House is introducing tougher penalties for companies that fail to comply with registration requirements. These new rules aim to combat corruption, money laundering, and fraud.
The penalties begin at £250 for minor first offences but can rise to £2,000 for repeat offenders. Persistent violations of registration rules may also result in civil action, director disqualification, or even criminal prosecution. In some cases, directors could face criminal prosecution.
Companies House will work closely with the Insolvency Service and other enforcement agencies to investigate and prosecute offences. Penalties may include fixed fines based on the offence, daily rate penalties for continued non-compliance, or a combination of these.
The new powers granted to Companies House will ensure stricter oversight of the companies register, including ensuring all documents are properly delivered and information on the register is accurate. These measures also aim to prevent unlawful activities by companies or individuals using the register for illegal purposes.
Businesses will have a 28-day window to avoid financial penalties by rectifying any issues after receiving a warning notice.
These changes are significant in strengthening the UK’s corporate transparency framework and holding companies accountable for their legal obligations.
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