05 Apr 2016
From tomorrow (6th April), UK companies and limited liability partnerships will be required to maintain a record of people with significant control.
The PSC register has been designed to increase transparency over who owns and controls UK companies and will help inform investors when they are considering investing in a company.
It will also support law enforcement agencies in money laundering investigations.
An individual who meets one or more of the following conditions in relation to a company will be considered a person with significant control and must be recorded on the register:
By definition, a PSC is an individual however, if a company is controlled by a legal entity that would fall within one or more of the above categories had it been an individual, then the company will require to note that entity on its PSC Register.
In order to compile the PSC register, each company is under an obligation to take reasonable steps to ascertain who is a registrable person in relation to it.
Such investigations by the company are to be made by notice to suspected registrable persons and a failure to take such investigatory steps, or to comply with the legislation, may result in criminal penalties for the company, its officers and/or the individual person.
Failure by the individual to respond to a company’s enquiries will give the company the ability to disenfranchise and impose other restrictions on any shares held by them.
From 30th June 2016, companies are required to file their PSC Register at Companies House at such time as the annual confirmation statement is filed. For the avoidance of doubt, the annual confirmation statement replaces the current Annual Return.
For individuals on the PSC Register, the following information will need to be disclosed:
A company’s PSC Register requires to be kept at its registered office (or single alternative inspection location) and be available for public inspection. The information on the PSC Register requires to be confirmed to Companies House at least once every 12 months.
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