You may already be aware from our previous post on this topic, that since April 2016 all companies and LLP’s have been required to maintain a register of People with Significant Control (PSC), containing information relating to individuals or entities who exert, or are in a position to exert, influence or control over that company.
Since the 30th June 2016 it became a requirement for PSC details to be submitted to Companies House as part of the annual Confirmation Statement, hence becoming the means by which any changes, additions or removals from the company’s or LLP’s PSC register are notified to Companies House.
The rules on the notification of changes to a company’s or LLP’s PSC information have now changed; these changes came into effect on the 26th June 2017 in order to comply with the EU Fourth Money Laundering Directive
With immediate effect, you will now need to notify Companies House if you have:
- A new PSC
- A change to existing PSC details (e,g. statements, residence, change of address etc)
- An individual who ceases to be a PSC
In total you will have just 28 days to notify Companies House of any of the above changes from the date they occur. 14 days to record the changes in your company’s PSC register and a further 14 days after this to inform Companies house.
You can use the Companies House Web-filing service to report these changes, or if you prefer, download and complete the relevant forms from their website (PSC01-09, or LLPSC01-09)
We are here to help, so should you have any queries regarding the points raised in this article, please feel free to get in touch
We would like to make you aware of new changes to the law that came into effect from 06 April 2016 and have a direct impact on companies and LLPs.
From this date companies and LLPs will be required to create and maintain a register of people with significant control (PSC) that needs to be kept with the statutory registers of the company. This register will contain information relating to individuals or entities who exert, or are in a position to exert, influence or control over that company;
We have included a link to a PDF report containing Guidance for PSCs and which note the following;
A PSC is an individual who meets any one or more of the following conditions in relation to a company:
- Directly or indirectly holding more than 25% of the shares (sections 5.1 and 5.4)5,
- Directly or indirectly holding more than 25% of the voting rights (sections 5.2 and 5.4),
- Directly or indirectly holding the right to appoint or remove the majority of directors (sections 5.3 and 5.4),
- Otherwise having the right to exercise, or actually exercising, significant influence or control (section 5.5),
- Having the right to exercise, or actually exercising, significant influence or control over the activities of a trust or firm which is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual (section 5.6).
You might find it easy to identify your interest in a company and determine whether you are a PSC, or your situation might be more complex and need clarification between you and the company. Some companies will not have anyone who meets the conditions, whereas other companies will have several people who meet one or more of the conditions and are PSCs (all of whom must be on the PSC register).
Please note that from 30 June 2016 companies and LLPs will have to deliver this information to Companies House in a Confirmation Statement (which is replacing the Annual Return)
The Gov.uk website provides full guidance notes on identifying PSCs and creating the register;
Should you have any queries please do not hesitate to contact us on 01872 271655 or via our Contact Page