There will also be measures to combat identity theft by restricting the personal detail revealed about directors. The measures are also aimed at improving the accuracy of the information supplied to government
In a consultation document published today, the government aims to reduce the amount of information that companies need to file and the frequency that it is sent to Companies House. Under company law, companies are required to submit details ranging from basic information such as the address of the company, through to more detailed information on ownership and financial position.
A key proposal is the suggested removal of the requirement to complete a mandatory annual return – the basic details on a company, such as the business address, type, names of directors and information about shareholders and shares.
Every company submits these and under the plans they could instead either digitally confirm each year that the information held by Companies House is correct or update it as and when it changes.
{desktop}{/desktop}{mobile}{/mobile}
The Department for Business says this would cut the time and money that businesses spent filing these forms, especially benefiting small and medium sized businesses (SMEs) whose details generally remain the same but nevertheless have to file information each year. This could also help reduce the amount of fees companies pay to agents to help them file this information.
The document also asks whether the return could still be retained, but better aligned with the filing requirements for the annual accounts which show the performance of the company in the latest financial year.
Business Minister Jo Swinson said: "We're taking steps that will mean that businesses, pushed for time and money, are not simply filing paperwork for the sake of it. This will mean companies can concentrate on growing their business and creating jobs."
The proposals follow the Red Tape Challenge on Company and Commercial Law. Also included in the plans are measures to: make it easier to jointly file annual accounts to Companies House and HMRC and the ability to conceal all or some of the date of birth of a director listed at Companies House to help tackle identity theft.
The measures would also improve communication with companies by requesting that when a company is set up they supply an email address to the Companies House and keep it up to date.