Maintaining company records and ensuring these records are kept consistently up to date can be an arduous task and made more difficult when additional requirements are imposed.
On 6 April 2016, the People with Significant Control (PSC) Register was introduced to aid transparency for UK registered corporations. Its aim is to make clear who are the beneficial owners of UK registered companies, despite it previously being possible to keep such control/ownership discreet through differing ownership/management structures.
Almost every business is required to maintain a PSC Register, although there are some limited exceptions. The rules apply if you manage one of the following – :
A person (this means an individual, a company, a trust, a partnership or any other entity) is regarded as having “significant control” if it directly or indirectly:
Actually exercises, or has the right to exercise, significantly influence or control:
Before details can be recorded on the PSC register, all such details must be confirmed with the person in question. Details required include the following: –
To determine who has control, it may be necessary to consider the Articles of Association of the Company, any Shareholders Agreements in place and/or any rights attached to shares.
Failure to comply with the PSC Register requirements could incur criminal penalties. Company officers, relevant individuals or entities and/or shareholders or members who have not complied could face penalties such as a fine or prison sentence of up to 2 years.
A Company must enter new information on its own register within 14 days and provide the updated information to Companies House within a further 14 days, once it has:
Wards’ Commercial and Corporate team offer specialist one-stop-shop legal advice for all types of business – from start-ups to established companies – covering areas including setting up a new business, growing a business and financing, securing premises and strategies for business succession. Find out more here
For an initial discussion or advice, please contact Solicitor Ciaran Keane on 0117 929 4811 or email Ciaran.firstname.lastname@example.org. Or contact Head of Corporate and Commercial Services Marina Maclennan on 0117 929 4811 or email email@example.com
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