What is it?
A person with significant control (PSC) is someone who owns or controls your company or LLP. PSCs must now be recorded at Companies House.
Who is it for?
All the Companies and LLPs registered in the United Kingdom.
How does it work?
Identifying your PSC
Most PSCs are likely to be people or a corporate entities that hold:
- more than 25% of shares in the company
- more than 25% of voting rights in the company
- the right to appoint or remove the majority of the board of directors
If your PSC holds more than 25% of shares, they’re likely to hold the same amount of voting rights.
A PSC might influence or control your company directly, or on behalf of someone else. For example, a PSC may be an individual who tells the directors or shareholders what to do.
Companies controlled by a trust or firm
If a trust or firm influences or controls your company, you must decide if they meet any conditions of control described above. If they do, any person who controls that trust or firm is a PSC of your company.
A joint shareholding is not counted singly for the purposes of the PSC register. Instead, every joint shareholder is treated as if they each hold the total number of shares or rights that are held jointly.
What should I do next?
- Identify if any individuals or registrable legal entities have significant control of the company or LLP
- Record the PSC details on your company’s or LLP’s PSC register and send this information to Companies House
Thereafter, any changes to PSCs – new PSCs, changes to existing PSCs, people ceasing to be PSCs and any statements that become true or cease to be true - must be reported individually within 14 days via relevant PSC forms.
If you require assistance with your duty to comply with the regulations regarding PSCs, please do not hesitate to contact our Company Assistant, Aysha Alam.
First Published 22 February 2021
Last Updated 22 February 2021
22 February 2021
Find out more about Aysha Alam