Identify and Record People with Significant Control (PSC) In United Kingdom Company
Companies in the UK are required to identify and record People with Significant Control (PSC) in their company. This includes Limited Liability Partnership entities too. If you operate a UK company, you need to know this.
Who Are PSCs in Your Company?
PSCs are individuals in your company who either directly or indirectly hold more than 25% of the following:
- Company’s shares
- Company’s voting rights
The PSCs in your company also have the right to either appoint or remove most of the company’s directors. PSCs in your company also hold significant control or influence over your company. Since they are such influential members or your organisation, it is important to identify and record who they are and keep those records up to date.
What PSC Details Need to Be Recorded?
The following details of PSCs in a UK company must be recorded:
- Their full name, date of birth, and nationality
- Their residential address (this must not be disclosed) and service address (if these two are different)
- The date they became a PSC in your company
- The date enter them to your PSC register
- The nature of control that they hold over your company
Updating PSC Information
Changes to a company’s Persons with Significant Control (PSC) information, like personal details or nature of control, must be updated in the company’s PSC register within 14 days of the change.
PSC Register Inspection
The PSC register should be accessible for inspection at the company’s registered office or an alternative location. It must be available for anyone to view free of charge, and copies can be provided for a fee of up to £12 each. The home addresses of PSCs must be kept confidential.
Compliance and Penalties
If a company suspects it has a PSC but lacks complete information, it must issue a notice to the PSC and possibly their advisers. Failure to respond to notices within a month or providing false information is a criminal offense, punishable by up to two years in prison, a fine, or both.
How to Effectively Identify, Record, and Maintain Your PSCs in A UK Company
Every company in the UK is required to have a register of PSCs that must be kept either at your official registered place of business, or where you have been asked to store it by the Companies House. The Companies House is the UK”s regulatory authority on all matters pertaining to companies in the UK. It is important that these registers always remain accurate, up to date, and easily accessible when the relevant authorities require access to it.
You must have a set of PSC records for your own internal purpose. You are also required to file one set with the Companies House as part of your annual return statement. Whenever there are changes to your PSCs, these must be updated.
In matters like these, it is always best to outsource the task to the experts like 3E Accounting. This is because if you don’t comply with the requirements, there could be serious consequences that follow. This could be anywhere from fines to criminal sanctions. To avoid repercussions, let the experts at 3E Accounting handle it for you.
