The Register of People with Significant control was introduced as part of the Small Business and Employment Act, 2015, after concerns were raised about corporate transparency at the 2013 G8 Summit. Although aimed mainly at large organisations, all private and public companies in the UK (apart from those publicly traded), need to keep and maintain a PSC Register under the new rules. Even micro companies with a sole director and no employees are not exempt.
There are five main criteria when identifying people with significant control:
Relevant Legal Entities (RLEs)
Provision has been made to include ‘relevant legal entities’ within the PSC Register. Legal entities that have significant control over another company - as part of a large conglomerate, for example – will need to be identified and added to the register, as will certain other companies with their own existing disclosure requirements.
The register is available for public view, and can be accessed online through the Companies House website. It may be kept at the company’s registered address, but must also be filed at Companies House.
Non-compliance with these requirements is a criminal offence. A company must take reasonable steps to identify people or legal entities with significant control by sending out notices. Directors can also send notices to anyone they believe is aware of a PSC or RLE.
From 30th June 2016 a Confirmation Statement should be sent to Companies House each year, replacing the Annual Return. New companies formed from 30th June 2016 onwards must send a statement of initial significant control.
Begbies Traynor can assist in setting up your PSC Register, and make sure that you comply with all statutory requirements.