Changes for almost ALL Limited Companies and LLPS from 6 April 2016 in relation to the PSC Register

From 6 April 2016, all limited companies and limited liability partnerships are now legally obliged to create and maintain a ‘persons with significant control’ (PSC) register.

This was brought into effect by The Small Business, Enterprise and Employment Act 2015 and is in addition to a company’s current register.  As well as identifying those relevant individuals, this also extends  to legal entities with significant control if they hold their own PSC Register and are the first relevant legal entity in the company’s ownership chain.

So, how do you identify who your persons with significant control are?

Any individual or UK registered company who meets at least one of the following requirements will be recognised as having significant control:

  • holds, directly or indirectly, more than 25% of the shares
  • holds directly, or indirectly, more than 25% of the voting rights
  • holds directly, or indirectly, the right to appoint or remove a majority of the board of directors of the company
  • has the right to exercise significant influence or control over the company
  • exercises significant influence or control over any trust or firm which has significant control over the company

Once you’ve identified who needs to be on your PSC Register, you will need to ensure that the following information is included and maintained:

For an individual:

  • Name
  • Service address
  • Country/state of residence
  • Nationality
  • Date of birth
  • Residential address
  • Date on which the individual became registrable
  • Nature and extent of control

For a relevant legal entity:

  • Company name
  • Registered or principal office
  • Legal form and governing law
  • Company register and number
  • Date on which the legal entity became registrable
  • Nature and extent of control

The PSC register must be up to date at all times and readily available for public inspection, all such information will also be online at Companies House.  Failure to meet these requirements will be recognised as a criminal offence.  In addition, from 30 June 2016, the PSC information will also need to be  provided to the Registrar of Companies, as part of their ‘annual confirmation statement’ (which will replace the annual return).

CBW is of course on hand to help you, from identifying, requesting, collating and maintaining the required information for the PSC register to ensuring that you submit the correct information to the Registrar of Companies, meeting the required deadlines. Speak to the author below for more information or contact our audits & accounts team.