Shein UK breaches company law by failing to disclose PSC
The issue was spotted by Dan Neidle, the founder of Tax Policy Associates, who said that knowingly or recklessly making a false or misleading filing would be a criminal offence
Shein’s UK arm has reportedly failed to disclose its ultimate ownership, breaching company law that could disrupt its reported plans to list in the UK, According to The Guardian.
The publication said it was found that Shein Distribution UK Ltd’s filing with Companies House listed Roadget Business Pte Ltd, which is based in Singapore, as its Person with Significant Control (PSC) and not an individual.
UK companies are legally required to declare their ultimate human beneficial owner. The issue was spotted by Dan Neidle, the founder of Tax Policy Associates, who said that “knowingly or recklessly making a false or misleading filing would be a criminal offence”.
As a result, Neidle called on Companies House to build a system that could automatically reject clearly unlawful filings.
A spokesperson for Shein told The Guardian: “We are grateful that this has been brought to our attention. Unfortunately, this error was not identified in the company’s registration process. We are currently working to rectify this.”
Shein’s UK business made £1.1bn in sales last year, and a pre-tax profit of £12.2m in the 16 months to 31 December 2022, according to documents filed with Companies House.
Shein is reportedly in the early stages of exploring a London listing because it believes it is unlikely that the US Securities and Exchange Commission would approve its initial public offering (IPO).
If it were to go ahead, it would be one of London’s biggest ever corporate listings and a boost to the country’s reputation as an international financial centre.
This week, Companies House received greater powers to tackle factually inaccurate information on its register and crack down on abuse.
