The role of Companies House is often unknown to both start-ups and many established businesses. Clients are often confused as to why they are required to file accounts with both HMRC and Companies House.
The main role of Companies House is:
- To incorporate and dissolve limited companies
- To store company information and make it available to the public.
This role means that a lot of company information can be found out through a simple search via Companies House online service, Webcheck. As a minimum, the following information is available through this service:
- Historical sets of company accounts (be aware however that if the company is classed as small, they are able to file abbreviated accounts which only show limited useful information).
- Annual return. This document is filed annually by companies and shows details of the directors and shareholders of the company.
- Registered office of the company.
- Date of incorporation.
These documents as well as many others can be downloaded from the site for £1 each.
What does this mean for a company?
Firstly, the downside. As a Limited company, there is a lot of information on the public record which can be accessed for a small fee.
The benefit of this however is that Companies House can be a very cost effective and simple way to carry out checks on your competitors, partners, suppliers or customers. The financial information shown for small companies is often not that useful, but it may give a basic idea of their financial strength. Using this service will also help in checking that a potential business associate is not being dissolved or in liquidation.