On 6 April 2016 a new reporting requirement for all UK companies came into force. The Persons of Significant Control (PSC) Register was introduced by the Government to give a full picture of the legal and beneficial ownership of UK businesses. Its main aim is to encourage transparency and help combat tax evasion, money laundering and terrorist financing.

Most UK companies, including companies limited by guarantee, and LLPs are now required to maintain a register and file required information at Companies House from 30 June 2016.

What are Persons of Significant Control?

A person with significant control is anyone in any company or LLP who meets one or more of the following:

  • 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.
  • Otherwise has the right to exercise, or actually exercises significant influence or control.
  • Where a trust or firm would satisfy one of the first four conditions if it were an individual, any individual holding the right to exercise, or actually exercising, significant influence or control over the activities of that trust or firm.

The regulations have serious consequences for those who do not comply, although at the present time it’s not clear how the regulations will be policed and who will enforce them.

More information

Read our Comment On…Persons of Significant Control (pdf) for more information.

Are PSC rules passing organisations by? Read Dave Roberts’ blog from 29 April 2016.

The government has published guidance relating to the Register, including what information should be recorded, and this should be reviewed prior to setting up your company Persons of Significant Control Register: read it here.

Read the Companies’ House blog on PSC from 13 April 2016.

If you have any questions, please contact Dave Roberts via 0131 5585800 or mail@chiene.co.uk.

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