Everything you need to know about ‘People with Significant Control (PSC)’ and the Confirmation Statement

Since April 2016 all UK limited companies and limited liability partnerships should be keeping a Register of People with Significant Control (PSC) in the company. This information should then be included in the Confirmation Statement – which has now replaced the Annual Return. In this post you’ll find everything you need to know about PSC, the Confirmation Statement and the services that we offer to help you stay compliant.

Who is a person with significant control?

According to the government this is anyone who:

• owns more than 25% of the company’s shares
• holds more than 25% of the company’s voting rights
• holds the right to appoint or remove the majority of directors
• has the right to, or actually exercises significant influence or control
• holds the right to exercise or actually exercises significant control over a trust or company that meets one of the first 4 conditions.

What information should be on the PSC Register?

It should contain the following for each person with significant control:

• Full Name
• Date of birth
• Service address
• Residential address (not on the public register)
• Country of residence
• Nationality
• Date the person became registrable (date they gained ‘control)
• Nature of their control (eg. “The person holds more than 50% and not more than 75% of shares”)

If another company is a PSC:

• Company name
• Registered office
• Company number
• Legal form
• Governing law
• Date the company became registrable (date the company gained ‘control)
• Nature of their control

How does the Confirmation Statement work?

The Confirmation Statement will be made up of all the same information that the Annual Return (which it is replacing) included plus a company’s PSC information. Once a company’s annual Confirmation Statement has been filed, the company can then file as many Confirmation Statements as it wishes within the year at no cost. This has been introduced to encourage company directors to keep Companies House fully informed of any changes. A company’s Confirmation Statement due date will simply take the current Annual Return due date.

What if a company doesn’t keep a PSC Register / file a Confirmation Statement?

Failure to keep a register / file a Confirmation Statement is a criminal offence and company directors who do not comply could receive a fine and have their company closed down.

Why have these changes been introduced?

To increase transparency in UK companies and combat issues such as money laundering. With the help of the PSC Register, the government can see who really owns / runs a company. This is all part of the Small Business, Enterprise and Employment Act 2015.

Do Company Formation MadeSimple offer services to help companies stay compliant?

Yes, we offer two low-cost services to assist you. Take a look here for more information:

PSC services to help you stay compliant