The biggest change is that directors cannot be appointed to the company unless their identity has been verified. This is designed to help trace criminals, and Companies House will be given far superior powers to investigate and remove false information.
"The Government feels this will give other businesses more confidence in whom they are doing business with!"
These changes will vastly improve the National Crime Agency's ability to trace suspects' activities as identity verification will be fast and efficient, taking only a few minutes per inquiry. It shouldn't have that much of an impact on how long it takes to incorporate a company.
Companies House data informs transactions between many businesses and also underpins credit scores and, subsequently, lending decisions. In the last 12 months alone, this data was accessed over 9 billion times, and studies suggest transactions of over £3bn are a result of these searches.
"The Government is bringing forward legislation to get these changes into law!"
Further consultations will be made on other changes under consideration, and this broader transformation of Companies House can only bring more benefits to business by streamlining and digitising processes and services.
I'll blog about any more important reforms to Companies House once we know more.
Until next time ...
ROGER EDDOWES Business Godparent
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If anything I've written in this blog post resonates with you and you'd like to discover more about these important reforms to companies house, call me on 01908 774320 and let's see how we can help. Don't forget to stay updated with our daily social media posts on our Facebook page.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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