August 2016: People with Significant Control (PSC) Register
The latest Government initiative: the PSC register has been implemented to ensure that anyone with a significant interest in a company can be easily identified. They are introducing this extra register to ensure transparency and to help combat money laundering.
This applies to UK Companies, SocietatesEuropaeae (SEs) and Limited Liability Partnerships (LLP’s) and any people with a significant interest in a company.
The table below is from the summary guidance document on the www.gov.uk website and gives a broad outline of the criteria to help identify an individual that meets the PSC registration requirements.
|Condition||What you need to consider|
|An individual who holds more than 25% of shares in the company||Review your company’s register of membersand identify shareholdings of over 25%|
|An individual who holds more than 25% of voting rights in the company||Review your company’s register of members, articles of association and identify people with voting rights (often attached to shares) over 25%.|
|An individual who has the right to exercise or actually exercises significant influence or control over the company||You would consider this where an individual does not meet one of the conditions above but does exercise ‘significant influence or control’ over the company. The statutory guidance sets out principles and situations where an individual would be a PSC|
|Where a trust of firm would satisfy one of the first four conditions if it were an individual. Any individual holding the right to exercise, or actually exercising, significant influence or control over the activities of the firm or trust.||If one of the above conditions is met by a trust or firm (without legal personality), read the relevant section in the statutory guidance to identify who should be included in the PSC register.|
More information can be found here: PSC Register Summary for companies
This is a legal requirement and therefore we are more than happy to help our clients set this up and keep in up to date on an annual basis.