All business will need to keep a record of people with significant control and file details with Companies House. The legislation impacts incorporated companies limited by shares, companies limited by guarantee, unlimited companies, and limited liability partnerships, which will be required to keep a people with significant control (PSC) register from 6 April 2016 and file relevant details at Companies House from 30 June 2016.
Identification of a PSC
A PSC is an individual who meets one or more of the following conditions:
- directly or indirectly holds more than 25% of the shares
- directly or indirectly holds more than 25% of the voting rights
- directly or indirectly holds the right to appoint or remove a majority of directors
- otherwise has the right to exercise, or actually exercises, significant influence or control
- has the right to exercise, or actually exercises, significant influence or control over the activities of a trust or firm that is not a legal entity, but would itself satisfy any of the first four conditions if it were an individual.