Companies House has been slammed for not probing bosses who give names such as Adolf Tooth Fairy Hitler and Judas Superadio Iskariot.
Sheffield University accounting professor and Labour peer Prem Sikka says the UK business registrar’s fails to do any background checks on weird names.
And he demanded that the Tories carry out the reforms of Companies House they have been promising since 2010.
He added: “Companies House is no more than a giant filing cabinet.
“The Government is obsessed with deregulation but it costs this country billions every year.”
And he cited new HMRC figures which show that £35billion of tax went uncollected last year of the £674billion which was due.
Anyone can set up a company for £12 and use the details to open a bank account and have access to the international banking system.
Companies House warns anyone looking at its records that it “does not verify the accuracy of the information filed.”
In a House of Lords written question Lord Sikka demanded to know how Companies House established the authenticity of a company registered as Mi5er Scrooge Spypriest the Great and Terrible Ltd.
The details listed show it is a private security company based in Bradford.
But director Lord Truman Hell Christ gave his occupation as war lord. And accounts filed last year were under the name War Trumpet.
Company secretaries were variously named as Mr Adolf Tooth Fairy Hitler, Victor Les-Appy Hugo, Judas Superadio Iskariot and the firm’s security controller was called James Bond.
Companies House records show that last year the company had assets of £666 and three employees.
Business minister Martin Callanan said: “We are unable to comment on individual cases.”
While there is no suggestion of any wrongdoing by this firm, Lord Sikka says that companies should undergo the same checks individuals need to obtain credit cards and passports.
And directors listed should provide National Insurance numbers to establish their identity.
He added: “Lots of databases are available to make these simple checks.”
And in written evidence on the Anti-Money Laundering Bill he said: “Companies House should be a vital cog in the regulatory machinery for combating money laundering. However, replies by ministers exude complacency and indifference.”
Anti-fraud minister Lord Agnew quit last month after highlighting such complacency when the Government wrote off £4.3billion in Covid loans thought to be fraudulent, many claimed by shell companies.
Italian journalists claimed that they could even register a company at 10 Downing Street in the name of a Mafia boss.
Lord Callanan added: “When parliamentary time allows, the Government intends to bring forward legislation to give the Registrar greater powers to check information.”
And a Companies House spokesperson said: “At present we don’t have the statutory powers to investigate fraud or verify the accuracy of information that is provided by UK companies.
“When errors are identified, we will do all we can within our current legal powers to rectify them. Where we believe there is potentially fraudulent activity, we will refer this to law enforcement agencies.”
