0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Company Legislation - The Register of People with Significant Control

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

Company Legislation - The Register of People with Significant Control

Reviewed: 18th May 2016

The Small Business and Employment Act, 2015, introduced a new requirement for companies to keep a Register of People with Significant Control. Intended to increase transparency and mitigate concerns about the complex nature of many corporate organisations, even the smallest limited companies have to comply with the new legislation.

A Register of People with Significant Control, or PSC Register, identifies individuals and other companies who hold considerable influence within a business. Issues caused by the commonly complex structure of large organisations came under discussion at the 2013 G8 Summit, and resulted in the register being introduced as part of the measures to increase transparency.  

Criteria for identifying PSCs

From 6th April 2016, identifying and making clear who holds significant control within a company is obligatory, and all company directors have to take reasonable steps to this end. Non-compliance brings with it severe penalties, so here are the criteria that will help you identify the necessary people and entities.

A person with significant control will, either directly or indirectly:

  • Hold more than 25% of shares
  • Hold more than 25% of voting rights within a company
  • Have the right to appoint or remove the majority of directors from the board
  • Have the right to exercise ‘significant influence or control’ within the business
  • Have the right to exercise ‘significant influence or control’ over a trust or non-legal entity, whose trustees or members can be identified by any of the preceding criteria

What do you need to do in practice?

You have to ‘take reasonable steps to identify’ people with significant control, and maintain a register of their details. From April 2016 the PSC Register must contain some information and should not be left blank, even if you only document the steps you are taking to comply.

This requirement is ongoing, and from June 2016 the information should be sent on an annual basis to Companies House, along with a confirmation statement. Failing to comply is a criminal offence and could result in severe financial penalties, or even a prison sentence.

You need to notify the people you believe could qualify as PSCs, and request their confirmation. If they fail to respond, you have the power to apply sanctions. Notices should also be sent to anyone you think is aware of someone holding significant control.

The obligation is on individuals to proactively provide information, and these people are also open to criminal action if they don’t respond.

What information is needed?

In the case of an individual you need to include their:

  • Name
  • Date of birth
  • Nationality
  • Service address
  • Usual country of residence
  • Usual residential address (doesn’t appear on the register)
  • Nature of their control, and the date it started

For a relevant legal entity (RLE):

  • Company name
  • Company number
  • Registered address
  • Legal form
  • Nature of their control, and the date it started

Real Business Rescue is here to help. We can guide you on how to set up your register, and ensure that you comply with all the requirements. Call today for a free confidential meeting. With 55 offices across the UK, you’re never far away from expert and confidential advice.


Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

55
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners