Posted by admin - March 23, 2016 2:05 pm Important News: PSC Register

Small Business, Enterprise and Employment Act – Register of people with significant control (PSC)

The above Act received Royal Assent in March 2015.  This will have implications for all businesses, with some exemptions, from April of this year, relating to the way in which businesses file information with Companies House.

Register of people with significant control (PSC)

An area we would like to highlight to you as of critical importance is the register of people with significant control (PSC).

From 6th April 2016, as part of the changes to the Small Business, Enterprise and Employment Act, it will become a legal requirement for all UK companies, Societates Europaeae (SEs) and limited liability partnerships (LLPs) to keep a PSC register.  This is in addition to existing registers, i.e., the register of directors and register of members (shareholders). They must also file the PSC information with the central public register at Companies House from 30 June 2016.

The PSC register is designed to increase transparency over who owns and controls UK companies.  It will assist investors when they are considering investing in a company. It will also be used to support law enforcement agencies with any money laundering investigations.

How to set up your PSC register

An officer of the company is required to:

  • Identify the people with significant control (PSCs) over the company and confirm their information. A PSC is anyone in a company or LLP 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
  • Record the details of the PSC(s) on the company’s own PSC register;
  • Provide these details to Companies House as part of the annual Confirmation Statement (which will replace the Annual Return); and
  • Update the information on the company’s own PSC register when it changes, and update the information at Companies House when the next Confirmation Statement is made.

Further details of these changes can be found here

For further information of assistance please contact your local MFW office.