DO YOU KNOW YOUR “PERSONS WITH SIGNIFICANT CONTROL”?

From 6th April 2016 most UK companies and LLPs are required to keep a register of individuals who are the organisation’s ‘ultimate beneficial owners and controllers’, this is known as the PSC Register or Person with Significant Control Register and as from 30th June 2016 this information must be filed at Companies House. The new requirement stems from the Small Business, Enterprise and Employment Act 2015 and the Government’s belief that increased transparency will help combat tax evasion, money laundering and terrorist financing by creating a full picture of both the legal and beneficial ownership of businesses. The rules apply to all UK companies, except those subject to Chapter 5 of the Financial Conduct Authority’s Disclosure and Transparency Rules (DTRs) who already have to disclose such information. The rules also apply to LLPs and to UK registered European Companies (Societates Europaeae). Persons in Significant Control (PSCs) are people who meet one or more of the five conditions outlined: directly or indirectly hold more than 25% of the nominal share capital; or directly or indirectly control more than 25% of the votes at general meetings; or directly or indirectly be able to control the appointment or removal of a majority of the board; or actually exercise, or have the right to exercise, significant influence or control over the company; or actually exercise or have the right to exercise significant influence or control over any trust or firm (which is not a legal entity) which has significant control (under one of the four conditions above) over the company. There is a detailed guidance pdf from the Government which can be found by clicking here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/515720/Non-statutory_guidance_for_companies__LLPs_and_SEsv4.pdf From 30th June 2016 the information on the PSC Register will be confirmed to Companies House at least every 12 months and will be held there on a publically searchable database

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