Asked by: Caroline Voaden (Liberal Democrat - South Devon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of requiring Companies House to carry out checks on the validity of companies addresses when they first register.
Answered by Justin Madders - Parliamentary Under Secretary of State (Department for Business and Trade)
The Economic Crime and Corporate Transparency Act 2023 introduced greater powers to remove false and misappropriated company addresses from the register and more stringent requirements around what constitutes an appropriate address.
It will also introduce compulsory identify verification for company officers. The automated nature of these processes means that they can manage a large amount of data at speed. Verifying an address and a company's link to it, however, would rely on different evidence, requiring much more manual processing. Given Companies House registers over 800,000 companies per year, the vast majority of which are entirely legitimate, the resource demands are likely to be disproportionate and such checks are not currently part of government plans.