In order to provide greater transparency as to who is actually behind a company and has “significant control”, limited companies and LLP’s amongst others are required to keep a register of these controlling entities known as the ‘PSC Register’. This new law applies from 30 June 2016 and companies will need to supply Companies House with the information on their PSC register along with the company’s confirmation statement, which will replace the annual return. From that date also, new companies will need to supply this information on incorporation so that it can be made publicly available.
In a nutshell, a person with significant control over a company is an individual who meets one or more of the following conditions:
- The person holds, directly or indirectly, more than 25% of the shares in the company.
- The person holds, directly or indirectly, more than 25% of the voting rights in the company.
Who is really controlling your company??
- The person holds the right, directly or indirectly, to appoint or remove a majority of the board of directors of the company.
- The person otherwise has the right to exercise, or actually exercises, significant influence or control over the company.
- The person has the right to exercise, or actually exercises, significant influence or control over an arrangement such as a trust, which is not a legal entity but which meets any of the other specified conditions in relation to the company, or would do so if it were an individual (Part 1, new Schedule 1A, 2006 Act) (new Schedule 1A)
- and anyone residing on the Cayman Islands ( only joking!)
If you need help or clarification, just drop us a line at info@tallandco.london