Corporate transparency and register reform
Executive summary
- AAT supports efforts to increase transparency and accuracy of information within the business community. This includes company formation and registration - an area that has been identified within the National Risk Assessment as a high-risk area of activity.
- Any improvements in transparency and accuracy must be balanced against any unnecessary increases in administrative and other burdens upon SMEs and microentities. This is especially the case for those who provide company formation services, accounts submissions and other activities related to Companies House.
- More information on third party agents filing on behalf of companies must be collected. This is explained further at 3.9.
- AAT believes government should both mandate ID verification for directors and require that verification takes place before a person can validly be appointed as a director.
- AAT agrees that company records should be kept on the register for 20 years from the company’s dissolution.
- AAT has some concerns about proposals for AML regulated entities being required to report anomalies to Companies House.
- Identifying and reporting the number of company directorships held by an individual is insufficient and a cap should be introduced. This is standard practice in many other countries and AAT believes a cap between 10-15 would be acceptable.
