The Companies House register is widely regarded as the definitive public record of UK companies. It underpins trust in the UK’s corporate environment, supports transparency, and enables investors, regulators, and the public to make informed decisions. However, an increasingly common issue is undermining confidence in the register: the appearance of duplicate firms.

Duplicate firms are companies that appear to be the same or strikingly similar but are registered multiple times. This raises serious questions about data accuracy, regulatory oversight, and the potential for misuse. While some duplication is legitimate, much of it reflects systemic weaknesses that are now drawing greater scrutiny.

What Are Duplicate Firms?

Duplicate firms typically share one or more of the following characteristics:

• Identical or near-identical company names
• Similar registered addresses
• Overlapping directors or persons with significant control (PSCs)
• Matching business activities or SIC codes

In some cases, these firms are created intentionally and lawfully. In others, they may be the result of administrative error, poor verification processes, or deliberate attempts to obscure ownership or activity.

Why Do Duplicate Entries Occur?

1. Weak Identity Verification
Historically, Companies House has operated as a registrar rather than a verifier. Information submitted has largely been accepted at face value, with minimal checks on identity, addresses, or director details. This has made it relatively easy for the same individuals to register multiple similar entities.

2. Legitimate Business Structures
Not all duplication is problematic. Businesses may register multiple companies for tax planning, risk management, franchising, or holding intellectual property. Group structures often involve similarly named entities that serve different legal or operational purposes.

3. Dissolution and Re-Registration
When a company is dissolved, its name may later be reused. While legal, this can create confusion, particularly when a new firm adopts a name closely associated with a defunct but reputable business.

4. Fraud and Financial Crime
More concerning is the use of duplicate or near-duplicate firms to facilitate fraud, money laundering, or phoenix activity. Bad actors may deliberately create multiple similar companies to confuse creditors, evade enforcement, or give an appearance of legitimacy.

The Risks Posed by Duplicate Firms

Erosion of Trust
The credibility of the Companies House register depends on accuracy. Duplicate firms muddy the waters, making it harder to distinguish genuine businesses from shells or clones.

Increased Fraud Risk
Fraudsters often rely on complexity and confusion. Duplicate companies can be used to open bank accounts, apply for credit, or mislead suppliers and customers.

Compliance Challenges
Banks, accountants, and regulated professionals rely on Companies House data to meet Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations. Duplicate entries increase the cost and complexity of due diligence.

Harm to Legitimate Businesses
When a firm shares its name or identity with another entity, particularly one engaged in misconduct, it can suffer reputational damage through no fault of its own.

What Is Being Done About It?

The UK government has acknowledged the shortcomings of the existing system. The Economic Crime and Corporate Transparency Act represents a major shift in how Companies House operates, granting it stronger powers to:
• Verify the identity of directors and PSCs
• Query, reject, or remove suspicious information
• Share data more effectively with law enforcement agencies

These reforms are intended to transform Companies House from a passive registry into a more active gatekeeper of corporate data.

What Businesses and Professionals Should Do

Until reforms are fully implemented, businesses and advisors should take proactive steps:

• Conduct enhanced due diligence when dealing with unfamiliar companies
• Check director histories and PSC links for patterns of duplication
• Monitor your own company details regularly to ensure accuracy
• Report suspicious entries to Companies House where appropriate

For legitimate firms, maintaining clear and consistent records is essential to avoid being mistaken for a duplicate or clone entity.

Looking Ahead

Duplicate firms on the Companies House register are not merely a data inconvenience, they are a symptom of deeper structural issues in corporate transparency. While many duplicates arise from lawful business practices, others expose vulnerabilities that can be exploited for financial crime.

The success of ongoing reforms will depend not only on new legislation but also on effective implementation and enforcement. A cleaner, more reliable register will benefit everyone: businesses, regulators, investors, and the public alike.

In the meantime, awareness remains the first line of defence.

Any firm that finds a suspicious company incorporated in the past week should contact Companies House to report it.

If you find yourself in this position and wish to establish whether your situation might be considered by the Company Names Tribunal, you can visit their website: http://www.ipo.gov.uk/cna

At CRO, we ensure we are compliant with the current HMRC money laundering regulations and request relevant identification documents where necessary. We have recently implemented our IDV service in accordance with new government regulations to verify all directors and PSC’s of a company. We also maintain company registers for thousands of companies, so they can provide clear and consistent records.

If you would like more information on any of our corporate services please contact Alice Spencer – [email protected].