A network of UK-based firms that quietly helped thousands of overseas clients set up British companies has now been shut down by the courts.
Investigators say the businesses created the appearance of a legitimate UK presence for companies that, in reality, barely existed on British soil.
The High Court in London ordered the closure after finding the operation posed a serious risk to consumers and the integrity of the UK’s company register.
Thousands of Companies, Little to No UK Footprint
At the centre of the case were three connected firms: Yunma Tianlong International Consulting Co., Limited, Busy Secretary Service Limited, and J&C Business (UK) Co., Limited.
Together, they provided company registration and secretarial services to more than 11,000 UK-registered businesses, most of them controlled by clients based in China.
While registering a company in the UK is legal, investigators found that many of these businesses had no genuine operational presence in the country at all.
Customers shopping online were often left believing they were dealing with UK-based sellers, when in fact the businesses were run entirely overseas.
Operating Outside the Rules Meant to Stop Abuse
A key issue uncovered by the Insolvency Service was that none of the three firms were registered as Trust and Company Service Providers (TCSPs) with HM Revenue and Customs.
That registration is not optional. It brings firms under strict anti-money laundering rules, including background checks on clients and monitoring for suspicious activity. According to investigators, those safeguards were missing entirely.
There was no evidence of proper identity checks, no meaningful due diligence, and no systems in place to detect potential misuse of UK company structures.
A Single Address, Thousands of Companies, and Piles of Mail
One of the most striking findings involved a registered address on Brighton Road in South Croydon. By April 2024, more than 8,500 companies were listed at that single location.
Yet investigators found no real business activity there. Post sent to the address went unopened, with letters reportedly piling up to the height of the letterbox. The scene painted a clear picture: a paper address used to give credibility, not a functioning business hub.
Dormant on Paper, Active in Reality
Despite claiming dormancy in official filings, some of the companies linked to the scheme appeared to be actively trading online. They sold items such as pet supplies and women’s clothing, targeting UK consumers while presenting themselves as British businesses.
Several of those client companies have already been shut down by the courts, and more than half have faced enforcement action from Companies House. Investigations into others are still ongoing.
Why the Government Stepped In
The Insolvency Service said the closures were necessary to protect the public and prevent the Companies House register from being misused.
Mark George, Chief Investigator at the Insolvency Service, said consumers expect honesty when they buy from a business that looks British. Allowing false impressions to stand, he warned, undermines trust across the entire system.
Officials stressed that the company register is not just a database—it underpins confidence in UK trade, investment, and consumer protection.
Ministers and Companies House Back the Crackdown
Business Minister Blair McDougall welcomed the court action, saying consumers deserve transparency about who they are dealing with and where a business actually operates.
Companies House also made clear that while most third-party agents act responsibly, a minority fail to follow the rules, sometimes recklessly. Those agents, officials said, will increasingly face enforcement as government bodies work more closely together.
Part of a Wider Clean-Up Effort
The shutdown follows a broader government crackdown that saw thousands of companies removed from the register last year. Law enforcement agencies and regulators have been targeting shell companies, misleading registrations, and structures that could be used for fraud or other abuses.
The message from authorities is blunt: the UK remains open for business, but not for exploitation.
What Happens Now
The Official Receiver has been appointed as liquidator for all three companies. Anyone with questions or claims relating to their affairs has been directed to the Public Interest Unit of the Insolvency Service in Stratford, London.
Meanwhile, enforcement action against connected companies continues, and officials say further removals from the register should be expected as investigations progress.
Why This Case Matters Beyond These Three Firms
This case highlights a growing global issue: how easily online businesses can blur borders while using respected jurisdictions to build trust.
For consumers, it’s a reminder to look closely at who they are buying from. For regulators, it underscores the need for constant vigilance. And for the UK, it marks another step in protecting the credibility of one of its most important public records.