'Person with Significant Control' or 'PSC' Register
From the 6th April, ALL limited companies & LLPs will be required to hold and have available for inspection a register of people with significant control over the business. The Companies House Annual return will be abolished and details from the PSC register will need to be submitted every 12 months instead.
'What constitutes significant control?'
A person defined as having control is someone who meets one or more of the following conditions....
- Direct or indirect ownership of 25% of the company's shares
Direct or indirect control of 25% of the limited company's voting rights.
Direct or indirect right to appoint or remove a majority of the board of the company of directors.
Has the right to exercise significant influence over the control of the company
Has the right to exercise significant influence or control over activities a trust or firm which itself meets one or more of the first four conditions.
'So what do you need to do next?'
Once you have identified every person with significant control, you must maintain the following information about each individual...
Name
Registered office address
Nationality
Date of Birth
Usual residential address
Date from which person became a registrable person or person with significant control in the company
Nature of their control (%age of control)
An updated 'Confirmation Statement' formerly the Annual return, must be submitted to Companies house every 12 months, and a register must be maintained from April 2016. Filing at Companies House will commence from 30 June 2016.
What will happen if I fail to keep accurate information on a register?
Failure to provide accurate information when requested for an inspection is a criminal offence and you could find yourself with a hefty fine or even up to 2 years in prison!