You may have noticed that from 6th April 2016 all companies, Limited Liability Partnerships and Societas Europaea have needed to keep a register of persons with significant control (PSC Register) and that PSC legislation has recently changed. If not, here’s a quick guide on everything you need to know about PSCs.
Who is a PSC?
A PSC can be anyone in a company who meets the following criteria:
- They own more than 25% of the company’s issued shares
- They hold more than 25% of the company’s voting rights
- They hold the right to appoint or remove the majority of directors
- They have the right to, or they actually exercise significant influence or control
- They hold the right to or they exercise significant control over a trust or company that meets one of the first 4 conditions
But pay attention- when this legislation first came into force, companies had to notify their PSCs to Companies House as they were incorporated and then produce a confirmation statement (CS01 on the anniversary of the date of incorporation and each year thereafter). However, as of 26th June 2017, this has changed.
How has PSC legislation changed?
Now, exactly who owns and controls each company in the UK needs to be clearer, which means PSC information requirements have changed.
The most important change to keep in mind is that PSC information is not updated on the confirmation statement. Instead, you need to inform Companies House on forms PSC01 to PSC09 whenever any changes happen. There is plenty of time to do this as each company has 14 days to update their PSC Register and another 14 days to send that information to Companies House.
How does this legislation affect you and your company?
It is very important that you provide this information because if don’t it can be classed as a criminal offence. So, even if you think that your company does not have a PSC, or your company is trying to identify its PSC, you still need to complete forms to reflect this.
If you’d like any more information on PSCs or need assistance to ensure you are following legislation correctly, we’re happy to help. Please contact our Company Secretarial Team: