Source · Select Committees · Treasury Committee
Recommendation 53
53
Paragraph: 237
The low costs of company formation, and of other Companies House fees (such as filing...
Conclusion
The low costs of company formation, and of other Companies House fees (such as filing fees), present little barrier to those who wish to set up large numbers of companies for dubious purposes. The UK should be charging fees similar to those in other countries, which would yield significant extra funding for Companies House and for the wider fight against economic crime. An increased cost may also deter some formations, reducing the operational demands on Companies House. Large numbers of registrations of companies place cost burdens on other parts of the public sector, such as HMRC, and on the regulators and law enforcement agencies tackling economic crime. There is a strong case that the cost should reflect the wider burdens on the taxpayer and not just the marginal cost to Companies House.
Paragraph Reference:
237
Government Response
Not Addressed
HM Government
Not Addressed
The government recognises that there is a balance to be struck between setting fees at a level that does not discourage entrepreneurship, whilst also providing a sustainable funding model for Companies House to deliver on its objectives. The government believes the current fees for company formation are too low, and do not reflect the value of the register or the cost of maintaining it. That is why the government has committed to increasing fees for company registration and other services, as set out in the White Paper on Corporate Transparency and Register Reform. We will bring forward legislation in the Third Session to deliver these changes.