UK companies, Societates Europaeae (SEs) and limited liability partnerships (LLPs) are required, by law to identify and record the people who own or control their company.
Companies, SEs and LLPs need to keep a PSC register, in addition to existing registers such as the register of directors and register of members (shareholders) and must file the PSC information with the central public register at Companies House (SEs and LLPs need to refer to the full guidance document).
What information do I have to provide for the PSC register?
- You need to Identify the people with significant control (PSCs) over your company and confirm their information.
- Make sure you have up-to-date information for the following: the PSCs name, date of birth, nationality, county/state they live in, service address, residential address, date they became a PSC, level of their shares/voting right, and whether they have made an application to avoid public exposure.
- This information should be submitted to Companies House via forms PSC01 to PSC09.
- This information should also be recorded the company’s own PSC register.
When do I need to update the PSC register?
You need to report all changes to their PSC information as they take place – you will no longer be able to wait until the annual confirmation statement.
You have 14 days to update the PSC Register and another 14 days to notify Companies House of the changes.
How to identify a Person of Significant Control:
A PSC is an individual who meets one or more of the following conditions:
- An individual who holds more than 25% of shares in the company
- An individual who holds more than 25% of voting rights in the company
- An individual who holds the right to appoint or remove the majority of the board of directors of the company
- An individual who has the right to exercise, or actually exercises, significant influence or control over the company
- Where a trust or firm would satisfy one of the first four conditions if it were an individual -PSC then applies to any individual holding the right to exercise, or actually exercising, significant influence or control over the activities of that trust or firm.
Why has there been a change to recording PSCs?
The PSC register helps to increase transparency over who owns, and controls UK companies. The main reason for amendment to the legislation is to make it harder for terrorists and criminals to launder money. Companies House can now pick up on anomalies and identify high risk individuals easier, as they have accurate and up to date information. The PSC register also helps inform investors when they are considering investing in a company.
What happens if the requirements are not met?
Failure to provide accurate information on the PSC register, within the deadlines and failure to comply with notices requiring someone to provide information are criminal offences, and may result in a fine and or a prison sentence of up to two years.
If you would like help with any aspect of the PSC register, please contact our Payroll and Accounts Administrator Ruth Garrad.