By Lyndsey Hall
From 6th April 2016, keeping a register of persons with significant control (PSC) became compulsory for all companies and limited liability partnerships (LLP).
What constitutes a PSC?
For companies, it’s someone who:
- Owns 25% of the company shares
- Owns 25% of the voting rights
- Has the right to appoint or remove a majority of directors on the board
- Has significant influence or control over the company
- Has significant influence or control over a trust or company that meets one of the other conditions
For LLPs, it’s someone who:
- Owns more than 25% of surplus assets on a winding up
- Owns 35% of the voting rights
- Has the right to appoint or remove a majority of people involved in management
- Has significant influence or control over the company
- Has significant influence or control over a trust or company that meets one of the other conditions
Both companies and LLPs need to record information of individuals with significant control on a PSC register and file it with Companies House, alerting them to any changes within 14 days of confirmation.
What information do I need to provide?
The following information should be checked with the PSC and included in the register:
- Name
- Date of birth
- Address (residential and service)
- Country of residence
- Nationality
- Which of the 5 conditions for being PSC are met
- Date they became a PSC
- Any restrictions on disclosing PSC information which are in place
When should I advise Companies House?
In addition to the tighter timescale for updating the PSC register, companies are no longer required, or permitted, to report information via the Confirmation Statement. Instead, the new rules make it an “event driven” filing. But, when should you get in touch with Companies House?
- If you have reasonable cause to believe an individual has ceased to be a PSC, or the details of the PSC have changed, you must contact the PSC within 14 days
- Upon receiving confirmation (the PSC has 4 weeks to confirm) you must update the PSC register within the following 14 days
- Firms that haven’t elected to keep the PSC register at Companies House must notify the registrar within the following 14 days after the register has been updated
Unfortunately, failure to comply with these requirements could result in a fine or even a prison sentence of up to two years, so it’s essential that you remember to keep your PSC register up to date in a timely manner.
How do you feel about the new PSC register rules? Will they impact on your business? If you’d like to discuss the changes with an advisor please get in touch, leave a comment or find us on Twitter.
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