Register of People with Significant Control

New requirement for owners of Companies and LLPs – PSC Registers
From 6 April 2016 onwards a new register of Persons with Significant Control (known as a PSC Register) is required to be created and maintained by all UK companies and limited liability partnerships (LLPs).

Why?
The PSC Register is designed to help to increase transparency over who owns and controls UK companies and LLPs.

Who?

All UK companies and LLPs, including companies limited by guarantee and charitable companies need to identify and record the people who own or control the company or LLP.

When will this become publicly available?
From 30 June 2016 this information will be publicly available as the PSC Register will form part of the new Confirmation Statement which replaces the annual return to be filed with Companies House.

What is a PSC?
Broadly speaking, a Person with Significant Control (PSC) is an individual who holds more than 25% of the shares in a company or; who holds more than 25% of the voting rights or; who holds the right to appoint or remove the majority of the board of directors.

In addition if someone has the right to exercise, or actually exercises, significant influence or control over the company or LLP then they will also be registrable.

What about subsidiaries and groups?
When a UK company is controlled by another UK company which has its own PSC Register (a typical group situation) – the UK company can simply record the name of its own parent company.

Control of a UK company by an overseas company or a trust will require disclosure in the PSC Register of the ultimate individual owners and/or the individuals that can or actually do exercise significant influence or control over the UK company.

What if there isn’t a PSC?
The PSC Register can never be blank as, if there are no PSCs, this will require to be recorded.

What goes in the PSC Register?
The PSC Register must contain full names, service addresses, nationalities, dates of birth and residential addresses for all PSCs although the latter will not be publicly available. In addition, details of the nature of control exercised and the date of becoming a PSC need to be recorded.

What happens if I don’t comply?
It’s important to remember that failure to comply with the new rules and obligations is a criminal offence for companies and LLPs, their officers and the PSCs – sanctions include fines and imprisonment. 

Can you help?
Here at John Kerr Chartered Accountants, we are able to help companies and LLPs create and maintain the new PSC Registers. We can also help protect personal information by providing a service address and registered office facility if any PSC does not have a non-residential business address. Remember, we’re here to help and are able to guide and assist you to meet these new onerous requirements.