People with Signifcant Control RefisterPeople with Significant Control Register

So what is PSC – People with Significant Control?

From April 2016 rules are introduced which require companies to keep a People with Significant Control Register (or PSC for short).  Also from June 2016 the PSC information will have to be included on the new confirmation statement which will replace the current annual return that is filed with Companies House.  You will only have 14 days from the statement date to submit this to Companies House!

 

Why?

The introduction of the People with Significant Control Register is one of a number of changes to the Companies Act 2006 brought about by the Small Business, Enterprise and Employment Act 2015.  The aim of the Act is to create greater transparency in the ownership and control of UK companies.  It will also support law enforcement agencies in money laundering investigations , whilst increasing trust in UK companies.

 

Does it affect my company?

In essence yes, all UK private companies, including those limited by guarantee and UK LLP’s will have to keep a People with Significant Control register which identifies and records the people who own or control their company.  From 30th June 2016 it will need to be sent annually to Companies house with your confirmation statement (more on that in another article), this replaces the annual return.  The company has an ongoing obligation to maintain the register and investigate when it believes that there may have been a change in PSC.

 

Who can be a PSC?

  • A PSC can be an individual or a UK registered company.
  • Individuals may meet one of the conditions through director or indirect shareholdings.
  • UK companies are registerable if they meet one of the conditions below and have a direct interest in your company.

 

What the definition of an individual PSC?

  • Holds, directly or indirectly, more than 25% of the shares or voting rights in the company; or
  • Holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of the company; or
  • Has the right to exercise, or actually exercises, significant influence or control over the company; or
  • Where a trust or firm would satisfy any of the above conditions, any individual that has the right to exercise, or actually exercises, significant influence or control over the activities of that trust or firm.

 

What are the details of individuals which need to be entered on the PSC register?

  • Name and address
  • Usual residential address (this won’t appear on public register), country of residence and nationality
  • Date of birth
  • Date when individual became registerable
  • The nature of their control over the company

 

For a relevant legal entity

  • Corporate/firm name
  • Registered/principal office
  • Legal form and governing law
  • Applicable company register and number
  • Date on which the legal entity became registerable
  • Nature of control

 

Failure to comply

Failure to comply with the requirement could lead to the company or directors, or identified PSC’s committing a criminal offence.  The company and its directors could face a fine or imprisonment or both. 

 

Further guidance can be found on Companies House website   Click here

 

Feel free to contact us for more guidance.

Disclaimer
This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavour to ensure that the information contained in this article is correct, no liability will be accepted by KMA Accountancy for damages of any kind arising from the contents of this communication, or for any action or decision taken as a result of using any such information.

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