By Euro Company Formations, 27.07.18
A Person of Significant Control is someone who exerts a certain amount of control over a UK based company. This regulation applies to a UK Limited Company (LTD), Scottish Limited Partnerships (SLP), Societates Europaeae (SE) and Limited Liability Partnerships (LLP).
Who is considered a Person of Significant Control?
There are several headings under which a PSC may fall.
- They can own more the 25% of a company’s shares
- They can control more than 25% of the voting rights in a company
- Any individual who can control the majority of appointments to the board of directors
- Any individual who could be said to exert significant control over the company or its decision-making process
In some cases, a trust or firm may be in place as part of the shareholding structure of a UK Company. If that vehicle satisfies any of the above conditions, then the Companies House considers it a Person of Significant Control. In all cases, at least one PSC must be listed for a company, failure to do so represents non-compliance.
What is a company required to do?
Each company type is required to maintain records internally and in the Companies House register of all individuals who are considered to be a PSC. The PSC register is kept as part of the ongoing files of any UK Company and should be entered into or updated within 14 days of any addition or alteration.
The PSC register is submitted electronically through the Companies House portal and can be updated using the Confirmation Statement. When a change takes place, a Confirmation Statement should be submitted with the up to date information. Failure to submit or keep the PSC register up to date could result in a fine and/or a prison sentence.
What needs to go into the Person of Significant Control register?
Once an individual has been identified as a PSC their information should be gathered to be submitted. At the incorporation stage, the company will likely have all of this information, but it is also required post incorporation for any new Person of Significant Control.
Information such as name, address and date of birth are required along with details of what the nature of the control the individual has in the company. In cases where a security risk is apparent, as with the incorporation process, details can be kept confidential.
The experts at Euro Company Formations can assist you with the Incorporation of a UK Company, establishing or updating a PSC register and of course can expand on any filings required with Companies House, including the yearly requirement for a Confirmation Statement. Should you have any queries don’t hesitate to Contact Us or call our office on +353 1 6461627.