Register of people with significant control

All companies, except certain listed ones, are required to maintain a Register of People with Significant Control (PSC) and file relevant information at Companies House. At AHACCOUNTANTS, we provide guidance on PSC obligations in the Nottingham area.

The PSC register aims to enhance transparency regarding the control and ownership of UK companies. However, this places additional responsibilities on companies, their officers, and individuals with significant control over them.

Requirements

Companies must:

1. Take reasonable steps to identify individuals who are PSCs.
2. Contact relevant individuals or those who may know them to confirm their status as PSCs.
3. Obtain and confirm relevant information to include in the PSC register.
4. Update the PSC register with the information obtained.
5. Keep the PSC register current.

Changes in PSC information must be updated in the company’s register within 14 days and notified to Companies House within a further 14 days. Companies must also confirm the accuracy of their PSC information through their annual confirmation statement.

If a company becomes aware of discrepancies in the PSC register, it must update it to reflect the date when the information was no longer correct and the status of the investigation into new PSCs.

What is a PSC?

A PSC is defined as an individual who meets one or more of the following conditions:

• Holds, directly or indirectly, more than 25% of the shares or voting rights in the company.
• Has the right, directly or indirectly, to appoint or remove a majority of the board of directors.
• Has the right to exercise, or actually exercises, significant influence or control over the company.
• In the case of a trust or firm, any individual that has the right to exercise, or actually exercises, significant influence or control over its activities.

Companies must take reasonable steps to identify their PSCs. Some may find this straightforward, while others may need to follow a more detailed process.

If a company is owned or controlled by a legal entity rather than an individual, details of that entity must also be included in the PSC register. A relevant entity is one that maintains its own PSC register or has shares traded on certain markets.

Required Information for the PSC Register

The PSC register must not be blank. If a company is still gathering information, it must include a specific statement indicating this. New information must be entered into the PSC register within 14 days and filed with Companies House within a further 14 days. Failure to comply is a criminal offence.

The information required includes:

• Name
• Date of birth
• Nationality
• Country or state of usual residence
• Service address
• Usual residential address (if different from the service address)
• Date the individual became a PSC
• Nature of control over the company
• Any restrictions on disclosing the PSC’s information

A specific statement must be included in the PSC register if the company believes there are no PSCs.

Information must be confirmed before entering it into the PSC register. It is considered confirmed if:

• The PSC supplied the information or knew it was being provided.
• The PSC was asked to confirm the accuracy and did so.
• The PSC previously confirmed the information, and there’s no reason to believe it has changed.

Obligations of PSCs

PSCs have legal obligations, including responding to requests for information. Failure to do so may constitute a criminal offence. Companies may restrict shares or rights held by individuals who do not respond.

Public Availability of PSC Information

Most information on the central PSC register is publicly accessible. Exceptions include the PSC’s usual residential address (unless provided as the service address) and the day of their date of birth. Companies must not provide the usual residential address during inspections or when copies are requested.

If you choose to keep your PSC register only at Companies House, all information will be public, including the PSC’s full date of birth, but the residential address will still be suppressed.

In exceptional circumstances (e.g., serious risk of violence or intimidation), there is a regime for suppressing all information regarding the PSC.

Consequences of Non-Compliance

Failure to meet PSC regime requirements could lead to criminal offences for the company, directors, or PSCs, potentially resulting in fines or imprisonment.

Regulated sectors for anti-money laundering purposes, such as accountants and solicitors, are obligated to inspect a company’s PSC register and report any discrepancies in beneficial ownership to Companies House.

Further Guidance

The Department for Business, Energy & Industrial Strategy has issued extensive guidance on PSC requirements and processes. This includes official wording for the PSC register and