Since 6 April 2016 UK companies and LLPs have been required to identify, keep a register of and report annually to Companies House the identity of the people who control and own the organisation, called people with significant control (“PSC”).
Further changes to the rules are being made, meaning that from 26 June 2017 rather than reporting changes to PSCs annually when filing the confirmation statement, changes to PSCs will need to be updated on the organisation’s PSC register within 14 days of the change, and then reported to Companies House within a further 14 days. This requirement may mean that you need to put in place additional processes to monitor your PSC position and regularly update your records.
The aim of the change is to increase the transparency of who owns and controls UK companies and LLPs.
The new rules make other changes to the PSC regime, most significantly removing the exemptions for public companies on prescribed markets, which are outside the scope of this update. If you would like more information please get in touch with your usual contact at Taylor Vinters.
Changes to PSCs can be reported to Companies House using new forms PSC01 to PSC09.
What is a PSC?
A PSC is anyone who meets one or more of the following conditions:
- has direct or indirect ownership of more than 25% of the shares in the company;
- has direct or indirect control of more than 25% of the voting rights in the company or LLP;
- has a direct or indirect right to appoint or remove a majority of the board of directors; or
- exercises or has the right to exercise significant influence or control over the company or LLP.
Where a trust or firm satisfies any of the above conditions, and an individual exercises or has the right to exercise significant influence or control over the activities of that trust or firm, that individual also qualifies as a PSC.