Companies House

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Companies House is an Executive Agency of the United Kingdom Government in the Department for Business, Enterprise and Regulatory Reform. All limited companies in Great Britain are registered with Companies House and file specific details as required by the Companies Act 1985. Companies in Northern Ireland are subject to separate but similar legislation, discussed below. All limited companies, including subsidiary, small and inactive companies, must file annual financial statements and company returns, which are both public records.

Foreign companies (known in the legislation as "oversea companies") which have a branch or "place of business" in Great Britain must also register with Companies House and file annual financial statements, annual returns and other information. The required financial statements are of the whole entity, not the branch. It is irrelevant whether the financial statements are on the public record in the home country.[1]

European Economic Interest Groupings which have an official address or establishment in Great Britain must also register with Companies House.[2]

The United Kingdom has had a system of company registration since 1844. The legislation governing company registration matters is the Companies Act 1985 updated by Companies Act 1989 and the Companies Act 2006 which is being progressively brought into force over 2007-9.

Companies House has 2.1 million companies on the register and was one of the first National Company Registries to implement Electronic Company Formation. Now over 83% of companies are formed Electronically, and over 40% of documents filed electronically[3].

Companies House uses external companies to provide some of its services. The Companies House Contact Centre service is provided by Vertex Data Science. This contract has recently been extended for a further 5 years. The value of the contract is reportedly £12 million.

The Companies House Direct service and the website was run by Orchid Telematics. This contract came to an end as of 31 July 2006, and Orchid's function has been brought back within Companies House.

Companies House Website, Webfiling & WebCHeck service payment processing is dealt with by a company called Netbanx.

Contents

[edit] England and Wales

The registered office in Cardiff handles companies incorporated in England and Wales. These companies are subject to English law. There is another office at Nantgarw, Wales, which contains the Compliance Unit, Prosecuting Solicitors, Late Filing Penalties and the E-Filing Team. This office does not accept postal deliveries.

The London office in Bloomsbury Way is purely a facility to file and view documents, which are then processed in Cardiff.

The Registrar of Companies for England and Wales is the Chief Executive Gareth Jones. The previous Chief Executive, Claire Clancy, stepped down from the post to take office as the Chief Executive of the National Assembly in 2006/07.

[edit] Scotland

The Edinburgh office handles companies incorporated in Scotland. These companies are subject to Scots law.

The Registrar of Companies for Scotland is Dorothy Blair. Jim Henderson was the previous registrar.

[edit] Northern Ireland

All limited companies in Northern Ireland are registered with the Department of Enterprise, Trade and Investment [7]. Those companies are subject to Northern Ireland law.

Electronic Company Formation is not yet available for Northern Ireland Companies, and a different fee structure and process applies.

[edit] Types of companies

There are many different types of companies, including:

[edit] Company Formation Agencies - incorporation (business)

Most new companies are formed by Company Formation Agents. One of the oldest Company Formation Agents is Jordans Ltd. who created the Company Formation business back in 1863. The change to Electronic Company Formation has seen a large shift in the market to online agents.

[edit] Electronic Company formation statistics

Companies House has now formed over 1,000,000 Companies Electronically, and 370,000 new companies were formed in 2005/6[4].

For an idea of scale the Delaware Division of Corporations the leading US registry[5] has 695,000 businesses and 133,700 new incorporations in 2005.[6]

[edit] Criticisms

The online services of Companies House are not available from midnight until 7am each day, and not at all on a Sunday [7]. Whilst Companies House state that this is to allow time for batch processing of data entered during the day [8], it places a significant obstacle to verifying trading and other details for UK registered companies by companies located overseas where the time difference can be as much as twelve hours. Distributed database systems as used by major services worldwide are now easily capable of processing 'tens of thousands' of transactions in real-time.

Companies House has recently replaced their existing mainframe computer system with a modern n-tier application-server based service called CHIPS (Companies House Information Processing System). This system will move towards a 24*7 service in incremental steps following the Company Law Act changes in progress. CHIPS will ultimately allow the web-filing, web-check and Companies House Direct services to remain open 24 hours a day, every day. The switchover from the old mainframe to new unix based systems was made on the 25th February 2008 and this system is intended to provide the platform for future developments to modernise the UK company register.

[edit] Notes

  1. ^ Companies House booklet GB01
  2. ^ Companies House booklet GB04
  3. ^ Companies House Annual report 2005-2006[1]
  4. ^ Companies House Annual report 2005-2006[2]
  5. ^ Delaware DOC no business entities[3]
  6. ^ Delaware Department of State, Division of Corporations 2005 annual report[4]
  7. ^ WebFiling frequently asked questions[5]
  8. ^ Letter to Andrew Speakman[6]

[edit] External links