Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
New ECCTA powers enable Companies House to effectively remove significant fraudulent company information.
Recommendation
In March 2024, the first measures of ECCTA came into force. ECCTA introduces significant changes to the role of Companies House which are intended to improve the reliability of the information on the company register and reduce the risk of false registrations. These measures included new powers to check information for company registrations, remove inaccurate information and share information with other government departments and law enforcement agencies.51 Companies House told us it has taken action using its new powers, so far removing 50,000 office addresses from the register, referring 3,000 companies per week for strike– off, and removing other fraudulent information collectively affecting 63,700 companies.52 48 C&AG’s Report, para 2.8 49 TERS0002 50 Companies House strategic intelligence assessment – GOV.UK 51 C&AG’s Report, para 2.9 52 Q 53 14
Government Response Summary
The government agrees to explore options to improve the authenticity and integrity of company address information on the register and will report progress in November 2025, and notes that Companies House has already removed over 73,400 addresses and rejected 7,000 new incorporations with inappropriate addresses.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 4.2 The government accepts the case for exploring options to improve the authenticity and integrity of company address information on the register. 4.3 Already, since 4 March 2024, when the first phase of powers under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) was introduced, Companies House has prioritised tackling companies with inappropriate addresses. Over 73,400 addresses have been removed and, as a result, strike off has been initiated for up to 5,000 companies per week. Through increased capabilities in data analysis, Companies House continues to work to prevent the registration of misleading information at source. For example, 7,000 new incorporations have been rejected including where evidence has suggested addresses are inappropriate. 4.4 The Department for Business and Trade (DBT) and Companies House will continue to work together in rolling out the remaining ECCTA reforms, which will help to tackle economic crime and fraud. This will include the upcoming introduction of identity verification requirements. 4.5 The potential benefit of additional legislative measures will remain under review as ECCTA reforms become embedded and their impact is evaluated. Any further changes would need to be balanced against a range of factors including burdens on business, administrative impacts and other legislative priorities. DBT and Companies House are already considering options and will report to the Committee on progress in November 2025.