Companies House implements new powers with new non-compliance penalties

The new regime will drive better compliance and supports the agency’s key objectives to improve the accuracy of the UK company register and crack down on misuse.

Companies operating in the UK are being urged to ensure compliance with their legal obligations as Companies House prepares to introduce new penalties for those failing to meet requirements. The initiative supports the agency’s broader mission to improve the accuracy of the UK company register and combat economic crime.

Under the new enforcement measures, businesses must stay on top of their responsibilities, such as filing confirmation statements on time. Companies House will offer support to help businesses meet these obligations, but those that persistently ignore warnings may face financial penalties. More severe violations could lead to civil action, director disqualification, or even criminal prosecution.

Companies House will collaborate with the Insolvency Service and other enforcement agencies to investigate and prosecute offences. Directors convicted under these measures could end up with a criminal record. The agency will also share intelligence, refer cases, and engage in wider enforcement strategies outlined in its official enforcement policy.

This enhanced regime is part of the Economic Crime and Corporate Transparency Act 2023, which granted Companies House expanded powers to improve corporate transparency and tackle economic crime.

Commitment to a Firm but Fair Approach

Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, emphasised the significance of these new penalties in the agency’s ongoing transformation:

“The introduction of these new penalties marks another significant step forward for Companies House and our transformation.

“Where our guidance and support are not enough to encourage users to comply with the law or discourage misuse of our registers, we won’t hesitate to use these new powers available to us.

“We’ll take a consistent and proportionate approach to these new powers to firmly, but fairly, enforce the law. This will improve the quality of the data on our registers and help us play a greater role in identifying, disrupting, and preventing economic crime.”

Jonathan Lupton, Director of Legal Services at the Insolvency Service, reinforced this commitment, stating:

“We are committed to working collaboratively with Companies House to help improve the integrity and transparency of the data on its register.

“Where it is appropriate and proportionate to do so, and as part of our overall approach to tackling economic crime and wrongdoing, we will utilise the powers available to us to take enforcement action against misconduct on the register.”

This latest move signals a shift towards stricter oversight and enforcement, ensuring the UK’s corporate register remains accurate and transparent. Businesses are advised to take proactive steps to maintain compliance and avoid penalties under the new framework.

The wider approach to enforcement is set out in the Companies House enforcement policy.