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Companies House Filings Check Guide for Investors

Master Companies House filings for UK startup screening. Essential guide to accounts, PSC records, and risk signals for angel investors.

Companies House Filings Check Guide for Investors

Companies House provides free access to UK company filings, but many angel investors don't know how to interpret them for investment decisions. This guide explains which filings matter most for early-stage due diligence and how to spot red flags in UK startup records.

Essential Companies House Filings for Startup Screening

1. Confirmation Statement (CS01)

Required annually, confirms company details and ownership.

What to check:

  • Filing date: Must be filed every 12 months—late filing indicates poor governance
  • Registered office: Changes may signal financial pressure or restructuring
  • PSC register: Shows who owns >25% of shares or controls voting rights
  • Share capital: Review total shares and classes issued
  • SIC codes: Confirm business activity matches pitch deck claims

Red flags for investors:

  • Multiple address changes in short period
  • PSC changes shortly before fundraising
  • Share structure with excessive preference classes
  • SIC codes unrelated to claimed business model

2. Annual Accounts

Most startups file abbreviated or micro-entity accounts.

What early-stage investors should check:

  • Turnover: Revenue growth trajectory (if disclosed)
  • Net assets: Total assets minus liabilities = shareholder equity
  • Cash position: Available cash vs. burn rate
  • Director remuneration: Founder salaries in loss-making startups
  • Audit exemption: Most small companies are exempt but check for qualified opinions if audited

Red flags for angels:

  • Declining revenue with no disclosed funding runway
  • Mounting losses without clear path to profitability
  • Excessive director pay relative to company stage
  • Net liabilities (debts exceed assets)

3. PSC Register

Shows Persons with Significant Control—essential for ownership verification.

What to verify:

  • Founders listed as PSCs with substantial equity
  • No nominee PSCs or offshore holding companies
  • PSC addresses are verifiable (not PO boxes or formation agents)
  • Nature of control matches claimed ownership

Red flags:

  • Complex nominee structures hiding actual owners
  • Corporate PSCs registered offshore
  • Recent PSC removals before fundraising
  • Founders not listed as PSCs despite equity claims

4. Director Appointments and Resignations

Track leadership changes that may signal problems.

What matters for due diligence:

  • Date of appointments: Verify founder claims about incorporation timing
  • Resignation patterns: Multiple director exits may indicate internal issues
  • New appointments: Check if investors appointed directors after funding
  • Disqualifications: Search GOV.UK register for disqualified directors

Red flags:

  • Mass director resignations
  • Founder removed as director
  • Directors with history of dissolved companies
  • Appointments of insolvency practitioners

5. Charges and Mortgages

Shows secured debt or financial obligations.

What to check:

  • Charge holders: Banks, VCs, or other lenders
  • Charge amount: Size of secured debt
  • Charge type: Fixed charge (specific assets) vs. floating charge (all assets)
  • Status: Active charges indicate ongoing debt obligations

Red flags:

  • Multiple charges from different lenders
  • Charges close to or exceeding company value
  • Recent charges before fundraising (bridge loans)
  • Floating charges (often sign of distressed debt)

How to Read Startup Accounts for Investment Risk

Balance Sheet Key Metrics

For pre-seed and seed stage:

  • Cash at bank: Available runway before next fundraise
  • Trade debtors: Revenue owed by customers (indicates B2B traction)
  • Current liabilities: Short-term obligations like unpaid suppliers
  • Net current assets: Current assets minus current liabilities

Quick liquidity check: Current assets ÷ current liabilities. Less than 1.0 suggests cash flow pressure.

Profit & Loss Analysis for Angels

What matters at early stage:

  • Turnover: Revenue growth validates product-market fit
  • Cost of sales: Direct costs to deliver product/service
  • Administrative expenses: Overhead including salaries
  • Net loss: Expected for startups but should trend toward profitability

Key ratio: Revenue growth rate vs. loss increase rate. Revenue should grow faster than losses.

Interpreting Micro-Entity Accounts

Most UK startups file minimal accounts under micro-entity rules.

What you won't see:

  • Detailed revenue breakdown
  • Director remuneration specifics
  • Cash flow statements
  • Notes explaining accounting policies

What you can still verify:

  • Company remains solvent (assets > liabilities)
  • Filing compliance (accounts submitted on time)
  • Basic financial trajectory over multiple years

Investor action: Request management accounts for detailed financial due diligence.

Cross-Referencing Filings with Market Signals

Verify Claims Against Public Records

Founder background:

  • Check director appointment dates match claimed "co-founder since X" claims
  • Verify directors' other companies align with relevant sector experience
  • Search LinkedIn for gaps between roles and company incorporation

Funding claims:

  • Cross-reference Crunchbase funding announcements with cash position in accounts
  • Check if new directors appointed around funding dates (investor board seats)
  • Review PSC changes that might indicate new investors

Team growth:

  • Compare employee numbers in accounts with LinkedIn headcount
  • Check job postings frequency against stated hiring plans
  • Look for Glassdoor reviews indicating real team scale

Red Flags in Company Filings

Critical warnings for angels:

  • Late filings: Companies House penalties indicate poor financial management
  • Director resignations: Multiple exits within 12 months suggest internal problems
  • Dissolved companies: Directors with history of failed ventures (search their other appointments)
  • Nominee PSCs: Hidden ownership structures
  • Mounting charges: New secured debt before fundraising suggests bridge loans
  • Net liabilities: Debts exceed assets (technically insolvent)
  • Declining revenue: Shrinking turnover in filed accounts

Positive Signals for Early-Stage Investors

Good governance indicators:

  • Accounts filed on time every year
  • Stable director team with relevant experience
  • Clear PSC structure with founders holding equity
  • Cash position sufficient for 12+ months runway
  • Revenue growth (if disclosed in accounts)
  • Professional registered office address

Practical Filing Check Examples

Example 1: Healthy Seed-Stage Startup

Companies House findings:

  • Incorporated 18 months ago, all filings on time
  • Two founder-directors with PSCs showing 40% equity each
  • First accounts show £200k turnover, £150k loss, £400k cash
  • No charges or mortgages registered
  • Stable registered office, no director changes

Assessment: Clean governance, reasonable burn rate, good filing compliance.

Example 2: Red Flag Discovery

Companies House findings:

  • Incorporated 3 years ago, late filing penalties in year 2
  • PSC changes 6 months ago—original founder now holds <10%
  • Latest accounts show declining revenue (£150k to £80k)
  • Two charges registered from different lenders
  • Three director resignations in past 12 months

Assessment: Governance issues, potential founder disputes, financial distress.

Free Tools for UK Startup Verification

Essential resources for angel investors:

  • Companies House service: Free search, filings download, PSC register access
  • GOV.UK Disqualified Directors: Check director disqualification register
  • OpenCorporates: Alternative interface for UK company search
  • WebCheck: Companies House beta service with better filtering

No subscriptions required—all data is publicly available.

Common Filing Interpretation Mistakes

Mistake 1: Ignoring Filing Dates

Late accounts often precede financial problems or company failures.

Mistake 2: Not Checking Director History

Directors' previous dissolved companies are visible—check all their appointments.

Mistake 3: Accepting Micro-Entity Accounts at Face Value

Request management accounts for proper financial due diligence.

Mistake 4: Missing PSC Changes

Recent ownership changes may indicate dilution, disputes, or restructuring.

Pre-Investment Checklist for Syndicates

Before IC meetings, verify:

  1. ✅ Companies House registration active, not dissolved
  2. ✅ All accounts and confirmation statements filed on time
  3. ✅ PSC register shows founders with substantial equity
  4. ✅ No director disqualifications or dissolved company history
  5. ✅ Financial position supports claimed runway
  6. ✅ No undisclosed charges or secured debt

Summary

Early-stage investors can evaluate UK startup filings by checking:

  • Confirmation statements for ownership structure and filing compliance
  • Annual accounts for financial health and burn rate
  • PSC register for ownership transparency
  • Director records for background and company history
  • Charges register for undisclosed debt obligations

This guide explains how to interpret Companies House filings for early-stage investment screening.

Ventur compiles filings, sentiment, and market data into a single, evidence-linked report for angels and syndicates. Request a free verification report.

Questions about Companies House filings? Email hello@venturhq.co.uk