What is the 'Persons with Significant Control Register'?
May 18, 2016
From April 6 this year, the government has implemented the public register of beneficial interests. A beneficial owner is someone who gets all the benefits of being an owner, but the title of the company is in someone else’s name or is a person or group who has influence over or vote on specific transactions. In other words, anyone who has a controlling interest over the business.
These people will be known as Persons with Significant Control, or PSCs. The definition of a PSC is someone who has one of the following 5 points:
• has more than 25% of share capital
• holds more than 25% of votes at AGMs
• can appoint or remove the board
• has significant control of the company
• has control over a trust that has control over the business
All of the above conditions cover both direct and indirect influence. It’s important to look carefully at these provisions regarding the people involved in your business so that you comply with these new regulations.
This new PSC register is designed to show everyone who is connected to a particular company or business, whether as an owner or a beneficial owner and is designed to provide transparency and combat tax evasion, money laundering and other illegal activities.
But what does this mean for businesses here in the UK?
From the 30 June 2016, every company will have to include beneficial ownership details along with their annual returns to Companies House.
The new rules have been added to the Companies Act 2006, with the detail added to the register of Persons with Significant Control Regulations 2016. There is different guidance that relates to Limited Liability Partnerships (LLPs), so it’s important to review your exposure if your business is an LLP.
If you need help and guidance on the new rules for Persons with Significant Control and how it impacts your business, please do get in touch. You can call Christopher Taylor on 01264 325815 or email him: firstname.lastname@example.org who will be happy to help.
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