Today we’re going to cover a topic that’s important for anyone running a limited company in the UK – People with Significant Control, or PSCs. This might sound like a bit of jargon, but don’t worry, we’re here to make this as straightforward as possible. So, let’s jump right in!
A Brief History of PSCs
Before we dive into the details, let’s take a quick look at how PSCs came to be. The concept of PSCs was introduced in the UK in April 2016 as part of changes to the Companies Act 2006. The aim was to increase transparency over who owns and controls UK companies. This was a response to the international call for greater corporate transparency, aiming to combat tax evasion, money laundering and terrorist financing.
What Exactly is a Person with Significant Control (PSC)?
Think of a PSC as the person who’s got the reins of your company. They’re the ones who own or control your company, and they’re sometimes known as ‘beneficial owners’. A company can have one or more PSCs.
A PSC is usually someone who:
- Holds more than 25% of shares in the company
- Holds more than 25% of voting rights in the company
- Has the right to appoint or remove the majority of the board of directors
The Role of a PSC
Being a PSC isn’t just about having control, it comes with responsibilities too. The PSC’s details need to be confirmed and recorded in the company’s PSC register. This includes their name, date of birth, nationality, country of residence, and the nature of their control over the company.
Keeping Companies House in the Loop
One of the key responsibilities of a PSC is to ensure that their details are up-to-date on the company’s PSC register. But it doesn’t stop there. Any changes to a PSC’s information must be updated within 14 days and sent to Companies House within a further 14 days.
This information is also included in the company’s annual confirmation statement to Companies House. This statement is a snapshot of general information about a company’s directors, secretary (where one has been appointed), registered office address, shareholders and share capital.
What if There’s No PSC?
Sometimes, there might not be a clear PSC in your company. If you think your company doesn’t have any PSCs, you should let Companies House know. This is also something that you would include in your annual confirmation statement.
Summary
And there we have it! We’ve unravelled the concept of People with Significant Control, from its history to its implications for your company. Remember, while this guide aims to make things clearer, it’s not a substitute for professional advice. If you’re ever in doubt, it’s always best to reach out to your accountant for assistance.
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