Shein’s UK arm has breached company law after failing to disclose its ownership, a move which could disrupt the fast-fashion giant’s plans to consider a London floatation.
Under company law, businesses are legally required to declare their ultimate human beneficial owner – also known as their “person with significant control” (PSC).
Filings on Companies House show Shein Distribution UK Ltd has listed Singapore-based Roadget Business Pte Ltd as its PSC and not an individual.
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The error was spotted by Tax Policy Associates founder Dan Niedle who said that knowingly or recklessly making a false of misleading filing would be a criminal offence, The Guardian reported.
Niedle has called on Companies House to build a system that could automatically detect and reject unlawful filings.
Shein said: “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.”
The firm’s UK business made a pre-tax profit of £12.2m in the 16 months to 31 December 2022 from £1.1bn in sales.
Shein is understood to be in the early stages of considering a listing on the London Stock Exchange as it believes that the US Securities and Exchange Commission could reject its initial public offering application.
It follows reports that Chancellor Jeremy Hunt had held talks with the retailer’s executive chairman Donald Tang in a bid to persuade him to commit to what would be one of London’s biggest corporate flotations
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