Persons of Significant Control
21 June 2018
As of the 6th April 2016, it has come into legislation that all companies and limited liability partnerships within the United Kingdom will be required to provide a PSC register, which will contain information regarding people with significant control of that particular company or partnership. From June of 2016, this information must be sent annually to Companies House along with a confirmation statement which will replace the annual returns. This article will set out the specific requirements pertaining to a PSC register, as well as who may be considered a ‘person with significant control.’
WHY HAS THE PSC REGISTER BEEN IMPLEMENTED?
Essentially, the PSC Register has come into practice in an attempt to make information such as who owns and has authority within UK companies more easily obtained, which will be an advantage to future customers and potential investors, as well as making investigations pertaining to money laundering more straightforward. The only companies exempt from this requirement will be those who already provide information regarding ownership of shares under the FCA’S disclosure and Transparency rules.
WHO IS A PERSON OF SIGNIFICANT CONTROL?
A person will be considered to have significant control of a company or partnership if they meet any one of the following five conditions:
Holds 25% or more of the company shares, either directly or indirectly.
Holds 25% or more of the voting rights within the company, either directly or indirectly.
Has the right to appoint or dismiss the majority of the company’s board of directors.
Has substantial power or influence within the company.
Has substantial power or influence over the partners within a firm or trustees within a trust, of which the firms or trusts in question are not of a separate legal entity, and the partners or trustees would otherwise meet the other stated conditions.
A person with significant control is required to inform the company within one month once they have obtained this position, and commit an offence if they fail to do so.
WHAT WILL YOU BE REQUIRED TO DO?
From the 30th June 2016, all companies will be required to provide a PSC Register, record accurately and frequently, the details of the appropriate persons with significant control. They must also file all the information within the PSC Register at the central public register at Companies House.
WHAT DETAILS DO YOU NEED TO PROVIDE?
For every person with significant control in the company, you will be required to provide their:
Date of Birth
Residential Address (this will not be made public knowledge)
Date they were registered
The nature of control they hold.
For any legal entities, you will be required to provide:
The corporate name
Registered Office Address
Company Registration Number
Date of registration
Nature of control
Legal form and governing law
For a price of £20 + VAT, The Company Shop offers the new registers required. For more information, call us on 02890559955, or email us at firstname.lastname@example.org
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Brendan Corr, Corr & Corr Chartered Accountants