What is the Persons of Significant Control register?
Companies House requires every company to identify and record people who have significant control over them. This information is recorded on a persons of significant control (PSC) register with Companies House.
The PSC register was introduced to help prevent money laundering and terrorist financing, and increase the transparency of who owns and controls companies in the UK.
What information is held on the PSC register?
The following information must be obtained, confirmed and entered onto the 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 you include in a PSC register?)
- Any restrictions on disclosing PSC information that is in place
You'll 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
- 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 ‘right to exercise’ mean?
An individual could hold a right to exercise significant influence or control as a result of a variety of circumstances, including:
- Provisions included in the company’s constitution.
- Rights attached to shares a person holds, a shareholders’ agreement, or some other contractual agreement.
What happens if you don’t hold a PSC register?
There are very strict penalties for failing to keep an up-to-date PSC register, including fines and possible jail time.
But don’t worry, as a Crunch client we’ll take care of this for you provided you let us know about PSC changes as soon as they occur.
Making changes to your PSC register
As of 26th June 2017, PSC changes can no longer be updated on your Confirmation Statement. Instead, you have 14 days to update your PSC register and a further 14 days to inform Companies House of any changes.
If your company’s registered office is with Crunch, we’ll hold your PSC register. If your registered office is elsewhere, you’ll need to hold and maintain your own PSC. In both cases, it’s important to let us know as soon as any PSC changes occur - this will allow us to update Companies House within the deadline.
Holding your PSC at Companies House
You can voluntarily opt to have this register held at Companies House, although there are particular factors to consider:
Your register becomes part of the public record
Information such as the PSC addresses or dates of birth is made public. This information is protected when registers are held by the company.
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 the register was held at Companies House continues to remain part of the public record.
If the company’s registered office is at Crunch, 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.
We advise further reading of the legislation and guidance from the Government regarding PSC.