Companies wound-up in the public interest following Insolvency Service investigations
- Three connected companies have been shut down after providing company secretary and registration services to more than 11,000 UK businesses for overseas clients, predominantly from China
- The companies operated an unregulated business model, failing to register as trust and company service providers, not conducting anti-money laundering checks, and creating a false impression that their clients had a genuine UK business presence
- The Insolvency Service brought the case to protect the integrity of the Companies House register and prevent potential misuse of company structures by businesses with little to no actual presence in the UK
Three companies have been shut down after helping to set up thousands of businesses which had no real presence in the UK.
Yunma Tianlong International Consulting Co., Limited, Busy Secretary Service Limited, and J&C Business (UK) Co., Limited supported overseas clients, mainly from China, to register businesses in the UK.
None of the companies were registered with HM Revenue and Customs (HMRC) as trust and company service providers (TCSPs), meaning they operated outside anti-money laundering rules.
Several of their client companies, which sold products such as pet supplies and women's clothing, have also already been shut down by the courts after investigations found they gave customers a false impression of being genuine UK businesses.
More than half of the client companies have had enforcement action taken by Companies House and investigations are ongoing.
Yunma Tianlong International Consulting Co., Limited, Busy Secretary Service Limited, and J&C Business (UK) Co., Limited were all wound-up at the High Court in London on Thursday 29 January.
This action follows thousands of companies being removed from the Companies House register last year as part of a crackdown involving government and law enforcement agencies.
Mark George, Chief Investigator at the Insolvency Service, said:
If you are buying something from what looks like a UK business, you expect it to actually be based or have some presence here. These companies helped create a false picture for their overseas clients.
We've taken this action to protect the public and stop this kind of misleading activity.
The Companies House register is a vital public record that underpins trust in UK business. When that register is abused, it's not just a technical breach - it affects ordinary people and businesses who deserve to know who they are dealing with. We will continue working with our partners to protect its integrity.
Business Minister Blair McDougall said:
Consumers deserve to know that they're buying from a genuine business operating within the law.
I strongly support the Insolvency Service getting these companies shut down, sending a clear message that we will not allow the Companies House register to be exploited by those seeking to abuse it.
Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said:
Most third-party agents provide legitimate services and play an active role in the creation and management of UK companies.
We know however that some agents fail to comply with the rules and are careless, even reckless, in carrying out their duties.
We will continue to step up our efforts with our law enforcement partners to crack down on this type of activity and protect the integrity of the register.
TCSPs are firms or individuals that offer services such as forming companies, acting as directors, secretaries or trustees, and providing registered office addresses. They must be registered with HMRC and follow strict anti-money laundering rules.
However, Insolvency Service investigations revealed that the three companies did not carry out background checks or anti-money laundering due diligence on clients wishing to register UK companies.
They also had no genuine operational office presence in the UK. One address on Brighton Road in South Croydon had more than 8,500 companies registered to it alone as of April 2024 but post piled up uncollected, reaching as high as the letterbox.
The companies filed dormant accounts at Companies House despite conflicting information suggesting active trading which could not be verified. They also did not appear to follow UK data protection rules and did not fully co-operate with Insolvency Service investigations.
The Official Receiver has been appointed liquidator of Yunma Tianlong International Consulting Co., Limited, Busy Secretary Service Limited, and J&C Business (UK) Co., Limited.
All enquiries concerning the affairs of the three companies should be made to the Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ.
