PSC register implementation coming soon
Preparations now need to be made by accountants and other professionals who may be responsible for maintaining the statutory registers of companies and LLPs.
The new register of people with significant control (the PSC register) will come into effect for companies from 6th April and will be extended to LLPs later in the year.
The Small Business, Enterprise and Employment Act 2015 included provisions for the new PSC register, which is another measure aimed at improving transparency in how companies are run.
The PSC register will record the same information about individuals and organisations who have significant control (PSCs), but will add details regarding the nature of that control.
The information will be publicly available, apart from residential addresses and the day of birth.
However, it is not quite as straightforward as that. Under the new rules, an individual is defined to include corporations sole, governments, government departments, international organisations, and UK local government bodies and authorities.
“Significant control” over a company will be defined as holding more than 25 per cent of the shares in the company, holding more than 25 per cent of the voting rights in the company, and holding the right to appoint or remove a majority of the board of directors of the company.
Having the right to exercise significant influence or control over the company, trust, or firm will also qualify an individual to be included on the register.