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The Lucky Onion
PSC REGISTER – NEW RULES FOR BUSINESSES FROM 6 APRIL
As part of the government’s aim to provide greater corporate transparency, the Small Business, Enterprise and Employment Act 2015 has introduced a central public registry of individuals or entities who have a significant control of UK companies.
From 6 April 2016, companies and LLPs must keep a register of individuals or legal entities that have significant control over them, known as a PSC register.
A person of significant control is considered to be an individual who holds, owns or controls more than 25% of the UK company’s shares or voting rights, or who otherwise exercises significant influence or control over the company or LLP, or its management. If a company is owned or controlled by a legal entity, not an individual, the legal entity must be put on the PSC register if it is both ‘relevant’ and ‘registrable’.
From 30 June 2016 onwards companies and LLPs will have to deliver this information to the central public register at Companies House when making a confirmation statement. And those setting up a new company or LLP will have to send a statement of initial significant control to Companies House, alongside the other documents needed when applying to incorporate.
The majority of UK companies will need to comply with these provisions (although broadly speaking, UK listed companies are exempt as they are already subject to disclosure requirements under their listing rules). There are criminal penalties for companies and their officers for non-compliance.
Over the next few months an officer of the company should:
• identify people that have significant control over the company
• obtain and confirm their details
• record the details of the individuals and/or legal entities on the company register
• provide the information to Companies House as part of the confirmation statement
• monitor/update the information on the company register as and when it changes, and update the information at Companies House when the next annual confirmation statement is made.
The PSC register can never be blank. Where for some reason the information cannot be provided other statements will need to be made explaining why it is not available.
For detailed guidance visit www.gov.uk or contact us on 01242 514000 or email firstname.lastname@example.org