The Companies House annual report and accounts continues to show an increase in the number of the companies registered. The Department considers this to be a reflection of wider international trends and increased entrepreneurial activity.41 However, the rise in registrations also increases the likelihood that the Companies House register contains fake entries.42 The Department acknowledges Companies House needs to manage this and is introducing greater powers through the Economic Crime and Co...

The Companies House annual report and accounts continues to show an increase in the number of the companies registered. The Department considers this to be a reflection of wider international trends and increased entrepreneurial activity.41 However, the rise in registrations also increases the likelihood that the Companies House register contains fake entries.42 The Department acknowledges Companies House needs to manage this and is introducing greater powers through the Economic Crime and Corporate Transparency Bill for Companies House to check the identity of directors and to crack down on any abuse of the register.43 Type: conclusion | Number: 20 | Response status: accepted Government response: 6.1 The government disagrees with the Committee’s recommendation. 6.2 Most errors on the Companies Register are accidental rather than deliberate and are corrected before enforcement action reaches the prosecution stage. Historically courts have been reluctant to sanction offences where the