In April 2016, Companies House introduced a register known as the “Register of People with Significant Control”, also known as the PSC Register.
With this in place, all limited liability partnerships, Societates Europaeae and private limited companies in the UK are required by law to enter into the registry the information of people who have significant control or influence over the company. Companies have to submit this information via the central public register at Companies House when filing their first confirmation statement, previously known as their first annual return.
Primarily, the government introduced the Register in a bid to make issues of ownership more transparent. In short, it was devised to improve trust and communication so that other businesses and trade partners, the government, and general public are able to access information regarding who owns and controls companies in the UK. Furthermore, in obtaining this information, the government also hopes to be able to clamp down on activities such as tax evasion and money laundering.
What is a PSC?
A person has significant control of a company if they meet any of the following criteria:
- The individual exercises or retains the right to exercise significant influence or control over the company
- The individual directly or indirectly holds over 25 per cent of the nominal share capital
- The individual directly or indirectly controls over 25 per cent of the votes at general meetings
- The individual is directly or indirectly able to control the appointment or removal of a majority of the board
- The individual exercises or retains the right to exercise control or influence over any trust or firm that in turn has a significant impact on the company
If there is a change in personnel, or the amount or nature of ownership changes, the PSC Register must be updated accordingly so that public records are accurate.
How to make changes
In order to make these changes, the company will need to fill in a PSC04 Form, known as the Change of details of individual person with significant control (PSC), in accordance with Sections 790M & 790ZA of the Companies Act (2006). On this form, you will need to list the current details along with the updated information, including name, nationality, address (residential and company address) the date on which they became a PSC, and the change in the nature of control. This can be done at the time of filing your next confirmation statement.
If you are unsure about how to make changes to the register, working alongside a formation company can help you navigate the paperwork to ensure your records are correct. To find out more, click here to contact us today.