What every company needs to know about the Register of People with Significant Control before 6th April 2016
24th March 2016
New measures being implemented from 6 April 2016 will require all companies and LLPs to take action to ensure the right information is submitted to Companies House. These measures include the replacement of the Annual Return with the new Confirmation Statement and the introduction of a Register of People with Significant Control (PSC).
While there has been a degree of alarm raised about the new PSC Register, in most cases it simply requires companies to provide a small amount of additional detail about directors and shareholders. One of the reasons behind this change is to improve transparency around who owns and controls UK businesses.
If HB&O already files your Annual Return, we can create this register on your behalf as part of the preparation of your annual Confirmation Statement.
Companies and LLPs will need to start keeping a record of PSCs from 6 April 2016, in preparation to file their Confirmation Statement at Companies House from 30 June 2016.
A PSC includes people within a company or LLP who meet the following conditions:
- owns more than 25% of the company’s shares
- holds more than 25% of voting rights
- holds the right to appoint or remove company directors
- exercises significant influence or control of the company.
Whereas in the past companies would be required to submit names and addresses of directors, plus a list of shareholder names, to Companies House, the new PSC Register will extend these requirements. The register will need to include the following for all PSCs:
- Residential address
- Date of birth
- Service address
The residential address and the day of the date of birth will not be available on the public register, however, all other information on PSCs will be publicly available. If you currently use your residential address as your service address, you might want to consider making a change. Most companies use the address of their business premises as the service address. In certain circumstances, HB&O’s address may also be used.
Impact on international businesses
While in most cases, we believe the introduction of the PSC Register will have minimal impact on our clients, those businesses with non-UK parent companies should be aware that the register will need to include the names and details of those in control of the parent companies, wherever they are based. Depending on the complexity of your corporate structure, this information may take time to source so it’s worth making enquiries well before your Confirmation Statement submission deadline.
What should you do next?
In most cases, if HB&O is already responsible for your statutory filing requirements, we will take care of the new requirements and prepare your PSC Register for approval alongside your Confirmation Statement. If you don’t currently have advisers acting for you, or if HB&O does not file your Annual Return, it’s important to ensure you’re up to speed with the changes to ensure you comply with the new legislation. Failure by company directors to provide accurate information on the PSC register will be a criminal offence and could result in fines or, in extreme cases, a prison sentence.
For more details on how these and other changes being introduced as part of the Small Business, Enterprise and Employment Act could affect you and your business, please contact Greg Philp on 01926 422292 or email@example.com