- Corporate
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As part of the Economic Crime and Corporate Transparency Act 2023’s implementation, registered companies face new penalties if they do not comply with their obligations at Companies House. The obligations, including correct and timely filings, are in place to promote transparency and accountability in return for the benefits of limited liability.
1 minute read
Published 11 November 2024
As part of the Economic Crime and Corporate Transparency Act 2023’s implementation, registered companies face new penalties if they do not comply with their obligations at Companies House. The obligations, including correct and timely filings, are in place to promote transparency and accountability in return for the benefits of limited liability.
Enforcement action can range from financial penalties to civil action, director disqualification and, in very serious cases, criminal prosecution. Alternatively, Companies House may refer the case onto on alternative agency such as the Financial Conduct Authority or the National Crime Agency.
The new risk based approach adopted by Companies House will utilise a framework granting companies a level based on their compliance and the effort required by Companies House to improve it. This ranges from a Level 1 compliant company, warranting just monitoring and automated reminders, to Level 5 companies who are seriously or serially non-compliant. For such companies, Companies House will consider all sanctions they can impose against both the company and its actors.
Companies House have stated they “won’t hesitate to use these new powers” so it is vital that companies are on the ball and take the appropriate actions to ensure compliance. Such steps include obtaining professional advice when requiring guidance (specifically noted as a factor which can boost a company into Level 1 of the framework), therefore, if you would like to discuss the actions your company should be taking to fulfil its obligations and avoid the new penalties, please contact our Corporate Team.
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Shorter Reads
As part of the Economic Crime and Corporate Transparency Act 2023’s implementation, registered companies face new penalties if they do not comply with their obligations at Companies House. The obligations, including correct and timely filings, are in place to promote transparency and accountability in return for the benefits of limited liability.
Published 11 November 2024
As part of the Economic Crime and Corporate Transparency Act 2023’s implementation, registered companies face new penalties if they do not comply with their obligations at Companies House. The obligations, including correct and timely filings, are in place to promote transparency and accountability in return for the benefits of limited liability.
Enforcement action can range from financial penalties to civil action, director disqualification and, in very serious cases, criminal prosecution. Alternatively, Companies House may refer the case onto on alternative agency such as the Financial Conduct Authority or the National Crime Agency.
The new risk based approach adopted by Companies House will utilise a framework granting companies a level based on their compliance and the effort required by Companies House to improve it. This ranges from a Level 1 compliant company, warranting just monitoring and automated reminders, to Level 5 companies who are seriously or serially non-compliant. For such companies, Companies House will consider all sanctions they can impose against both the company and its actors.
Companies House have stated they “won’t hesitate to use these new powers” so it is vital that companies are on the ball and take the appropriate actions to ensure compliance. Such steps include obtaining professional advice when requiring guidance (specifically noted as a factor which can boost a company into Level 1 of the framework), therefore, if you would like to discuss the actions your company should be taking to fulfil its obligations and avoid the new penalties, please contact our Corporate Team.
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