What is a Person of Significant Control?
A person with significant control is somebody who owns or controls your company. They’re sometimes called ‘beneficial owners’ and it’s possible that your company might have more than one. Limited Companies are legally required to identify who their PSC is and let Companies House know who they are.
Why do I need a PSC register?
In April 2016, the Government introduced new legislation which requires all companies to keep a register of the people who influence or control a company. This will include details about their name, date of birth and nationality.
The reason this was introduced was to add an element of transparency to who owns, runs and influences private companies in the UK. All PSC information is public-facing, apart from their home address and part of their date of birth.
How to identify your PSC
Limited Companies are required to update their PSC register within 14 days of becoming aware that a person meets the PSC qualifications. A PSC must meet one or more of the following conditions and is likely to be the person or persons who 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 company is controlled by a trust or a firm, the person who controls the trust or firm will be the PSC for your company.
Significant influence or control
It is possible for someone to be a person of significant control (PSC) even if they don’t meet any of the conditions discussed above.
Someone can have influence or have control of your company through other means, which can be directly or on behalf of someone else, for example, someone may influence or control the actions of directors or shareholders or have powers to override decisions.
These people will need to go on the PSC register too. There are many ways someone can become a person of significant control (PSC). For more guidance on this head to the government’s website.
What information do I need?
To record the details of your PSC you’ll need the following information.
- date of birth
- country of residence
- service address
- usual residential address (not displayed to the public)
- the date they became a PSC of the company
- the date you entered them into your PSC register
- which conditions of control are met
You must also include the level of shares and voting rights they have.
When you form your Limited Company with us, we’ll make sure that you have a PSC register that’ll keep you compliant with Companies House regulations, meaning you don’t have to worry about any additional paperwork or getting in trouble with the law.
If you have questions about a Person of Significant Control, contact our expert customer support team and they’ll be happy to help.