What is the Persons of Significant Control (PSC) register?
Each company, from 6th April 2016 has to record persons who have significant control over them. This information will be recorded on;
- An Annual Confirmation Statement to be submitted to Companies House (previously known as an Annual Return); and
- The company�s own PSC register.
What will happen if you don�t hold a PSC register?
Failure to maintain a correct PSC register holds a penalty of up to two
years imprisonment, or an unspecified fine (or both).
Who do you include in a PSC register?
You will need to include individuals who
- directly or indirectly hold more than 25% of the company�s shares
- directly or indirectly hold more than 25% of the company�s voting rights
- directly or indirectly hold the right to appoint or remove the majority of directors
- directly or indirectly hold the right, or actually exercises significant influence or control; and
- hold the right to exercise or actually exercise significant control over a trust or company that meets any of the other 4 conditions.
What does the �right to exercise� mean in points 4 & 5?
An individual could hold a right to exercise significant influence or control as a result of a variety of circumstances including:
- The provisions of a company�s constitution.
- The rights attached to the shares which a person holds, a shareholders� agreement, or some other agreement.
Where is the PSC register held?
This depends on where the company registered office is. The PSC register would normally be held at the company�s registered office address. However, you can voluntarily opt to have this register held at Companies House, although there are particular considerations involved here, as follows:
- Your register becomes part of the public record.
- Information such as individuals addresses or days of birth are protected when registers are held by the company. This information becomes part of the public record when the information is kept at Companies House.
- Companies can opt in and out of holding register information on the public record at Companies House, but any sensitive information that was placed on the public record while register information was held at Companies House continues to remain part of the public record.
If the company�s registered office is The Accountancy Cloud, we will provide the details contained in the PSC register to any interested party who puts this request to us in writing.
If the registered office is elsewhere, the shareholder(s) will have to make their own arrangements about how it is stored and providing access to any interested party.
What information is held on the PSC register?
The following information must be obtained, confirmed and entered onto the PSC register for any individuals identified as a PSC:
- Date of Birth
- Country, state or part of the UK where the PSC usually lives
- Service address
- Usual residential address
- The date when the individual became a PSC in relation to your company
- You must select which of the five conditions for being a PSC the individual meets (please see Who do you include in a PSC register?)
- Any restrictions on disclosing the PSC�s information that are in place
We advise further reading of the legislation and guidance for People with Significant Control by visiting the government site here.