A recent news article highlighted that Twitter UK Ltd and TweetDeck Ltd have been hit with automatic late filing penalties by Companies House – the Company’s Registrar in the UK. However that doesn’t mean they have actually been fined, nor that they will pay them.
From experience, we have seen many companies formed and registered at Companies House – as every Branch/foreign company and Limited company should be, but when UK compliance isn’t adhered to, the company (providing it has no intention of continuing to trade under that name), can simply dissolve the company – and walk away from their debts, and simply start again in the UK under a different name.
While some companies may not be able to pay debts, or file late accounts due to inadequate internal processes, or quite simply business may be slow, or have ceased due to economic growth – is it right that companies can use this opportunity to close their business, walk away from their debts, responsibilities, and statutory duties and simply start again, with the same directorships, trading activities, but under a different name?
Are we really operating in a society that allows this? Unfortunately, yes.
Yes the UK is open for business – and is a wonderful envinromment to work in, but companies, whether UK or overseas parent owned should not be able to exploit the rules such that British Tax Payers have to compensate for them as a result. (more…)