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The new PSC register requirements came in effect!

As from April 2016, all registered UK companies, limited liability partnerships (LLPs), or Society Europaea (SEs) are obliged to maintain a register with the individuals who have significant control over them. The register of ‘people with significant control’ is also known as the PSC register. PSC’s purpose is to identify individuals who own more than 25% of the shares of a company (or more than 25% of an LLP’s assets), more than 25% of the LTD/LLP’s voting rights, or who otherwise have control over the company or LLP and its management. The introduction of the register takes a central part of the UK Government’s G8 commitment to total corporate limpidity.

All the requirements on keeping a PSC register are set out in part 21A of the Companies Act 2006 (added by the Small Business Enterprise and Employment Act 2015).

As from the 30th of June 2016 companies, SEs and LLPs will have to deliver PSC information once a year to the central public register at Companies House when they make a Confirmation Statement. The Confirmation Statement is a replacement of the annual return from July 2016. Starting from the 30th of June 2016 onwards, those who seek to incorporate a new company will have to send the required documents for the incorporation application to Companies House along with a statement of initial significant control.

Basically, a PSC is an individual who fulfils one or more of the conditions below:

  • controls 25% or more of the shares directly or indirectly;
  • holds 25% or more of the rights to vote directly or indirectly;
  • has the right to appoint or remove a majority of directors directly or indirectly;
  • otherwise has rights to execute, or actually executes significant control or influence; or,
  • has rights to conduct, or actually conducts significant influence and control on the activities of a trust which is not a legal entity, but falls within any of the four conditions above same as an individual.

Therefore the individual or individuals who control a company seem to be often different from those listed on the register of members. In these cases, the PSC register could seem quite different from the shareholder/membership register.

The information in the PSC register will be searchable online via Companies House which makes it completely available for public inspections.

Comprehensive Information on the new requirements can be found in the Department for Business Innovation & Skills (BIS) guidance here.

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