PSC Register Now Obligatory for Limited Companies & limited liability partnerships

May 23, 2016 4:05 pm Published by

Transparency Torn Paper ConceptA significant change in the legal reporting of businesses came into effect in April 2016.  The change from Companies House requires Limited Companies and Limited Liability Partnerships (LLPs) to create and maintain a register, called the PSC Register, detailing who is in control of their business. The change has been made in a bid to make the ownership of UK businesses more transparent.

What is the PSC register?

The register of ‘people with significant control’ (PSC), introduced on 6th April 2016, is essentially a list of the   people with significant control over the companies and the decisions they make. The new document will be set up and kept as part of the company register.

 From June PSC information will be included in the company confirmation statement form that is filed at Companies House on an annual basis and which offers an insight into company details including:

  • Previous company names
  • Current and resigned officers
  • Insolvency information
  • Address
  • Date of incorporation

The information is held on public record and is available to anyone wishing to see it, most of it free of charge although some information requires payment to view.

Why is the PSC register being introduced?

The aim of this register is to provide transparency on the ownership of UK companies by creating a full picture of both legal and beneficial ownership of a business. It will also be a resource for law enforcement agencies when investigating money laundering and also restore trust in UK companies.

Who is the PSC in my company?

A PSC is an individual or entity that meets one or more of the following criteria:

  • 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 any of the other 4 conditions

Please note that despite the title a PSC doesn’t have to be an individual, if a company is owned or controlled by another company it must include its owning companies name on the PSC register.

What do I need to do now?

Other than identifying who the people of significant interest are for your company there is nothing you need to do until you complete your confirmation statement to Companies House.

Need a Hand?

As there can be criminal charges imposed for non-compliance of these changes it is important to get it right.

If you have any questions regarding this change or are unsure who the PSC of your company is, don’t hesitate to call the team on 0117 3790810.

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This post was written by Steph Roffey

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