Freelancers operating as sole traders sometimes feel they must to do more on transparency to convince a client to take them on, if a limited company consultant is competing for the same contract.
That’s because a limited company, unlike a self-employed sole trader, can allay any concerns about its ownership by easily pointing out to the client that the company’s details are a matter of public record.
But it seems this advantage for the incorporated is no longer tangible, as Companies House has admitted that the information it is sent by registrants is received in “good faith,” meaning it is not verified.
The admission from the public register of UK companies came after an anti-fraud campaigner was able to incorporate a ‘bogus’ business in the name of Vince Cable, the Business Secretary, without his knowledge, reported the Daily Mirror
The fake company’s listing was only removed by Companies House following a tip-off by the campaigner, who came forward to say that he had registered a business in the politician’s name simply to highlight the absence of anti-fraud checks.