How to comply with the rules on the Register of People with significant control (PSC)

As of 6th April 2016 Companies and LLPs must keep PSC register, which must be available for inspection at their registered office. The aim to increase transparency of control of corporate entities.

A person will be a PSC if they:

  • own more than 25% of the company’s shares, or
  • hold more than 25% of the company’s voting rights, or
  • hold the right to appoint or remove the majority of directors, or
  • have the right to, or actually exercises significant influence or control, or
  • hold the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions.

For many SMEs this will be simple – the PSCs will be the owner proprietors already recorded on the Share Register and Annual Return. The PSC register should include their name, service address, country of residence, nationality, date of birth, usual residential address, date of becoming a PSC, and nature of control. This information is likely to be in the company’s registers already, but should properly be recorded in a separate register too.

From 30th June 2016 Annual Returns will be replaced by “Confirmation Statements” which will require this information. Companies can then elect not to keep a separate PSC register but simply to record this information at Companies House through their Confirmation Statements.

For entities with complex structures, corporate owners, shares in classes with different voting rights or with “shadow directors” identifying PSCs and completing the register may require professional help.

For guidance see keeping your people with significant control (PSC) register and the link in that to the guidance on the Small Business Enterprise and Employment Act.