From 6 April 2016, Limited Companies, LLPs (Limited Liability Partnerships) and SEs (Societas Europea) are required to hold a register of people with significant control (‘PSC register’). This is part of the government’s commitment to increase transparency in ownership and control of companies.
A PSC is anyone in a company, LLP or SE who meets one or more of the conditions listed in the legislation.
This is someone who:
- owns more than 25% of the company’s shares
- holds more than 25% of the company’s voting rights
- holds the right to appoint or remove the majority of directors
- has the right to, or actually exercises, significant influence or control
- holds the right to exercise, or actually exercises, significant control over a trust or company that meets one of the first 4 conditions.
The PSC register cannot be empty – details of the current status of the company’s investigations into the identity of its PSCs must be recorded and updated in the PSC Register. If there are no PSCs then this must be recorded in the register.
From 30 June 2016, the information in the Register will need to be filed at Companies House – either as part of the new annual confirmation process (which replaces the annual return in June 2016) or on a new incorporation.
What do existing companies need to do?
- Establish a PSC Register – even if it only contains a statement that the company has not yet completed taking reasonable steps to find out who are the PSCs.
- Take reasonable steps to identity PSCs.
- Record the required particulars.
- File the information at Companies House from 30 June onwards.
- Make the Register available to the public on request, apart from residential address, which should remain confidential.
Failure to provide accurate information on the PSC register is a criminal office and could result in a fine or up to two years in prison.
As part of our services, we can help clients through the process of establishing their PSCs and help with filing the information at Companies House. Please get in touch if you would like help with this or anything else.
Paula McIntosh, Administration