When you register a limited company in the UK, one of the key requirements is to declare who controls the business. This person or entity is known as a Person with Significant Control (PSC). The PSC register was introduced by the UK government in 2016 to increase transparency and reduce the risk of money laundering, fraud, and hidden ownership.

Understanding who qualifies as a PSC, what details must be recorded, and how to report changes to Companies House is vital for maintaining compliance and credibility.

Who Qualifies as a Person with Significant Control?

A PSC is someone who has a significant influence or control over the company’s activities. The law defines specific conditions that determine PSC status. A person (or sometimes another company) is considered a PSC if they meet one or more of the following criteria:

  1. Ownership of shares: They hold more than 25% of the company’s shares.

  2. Voting rights: They control more than 25% of the voting rights in the company.

  3. Right to appoint or remove directors: They have the power to appoint or remove the majority of the company’s directors.

  4. Significant influence or control: They exert influence or control over the company’s operations or decisions.

  5. Trusts or partnerships: They control a trust or firm that meets any of the above conditions.

These conditions ensure that anyone who genuinely controls the company, even indirectly, is identified and made publicly accountable.

Information You Must Record About a PSC

When identifying a PSC, companies are legally required to collect and maintain certain information in the PSC Register. This includes:

  • Full name

  • Date of birth

  • Nationality

  • Country or state of residence

  • Service address

  • Nature of control (which of the five conditions they meet)

  • Date they became a PSC

This information must be submitted to Companies House and kept up to date in your internal records.

Why the PSC Register Matters

The PSC register plays a critical role in promoting corporate transparency in the UK. It helps authorities, investors, and the public see who ultimately controls a company. This measure also strengthens the UK’s reputation as a secure and trustworthy place to conduct business.

Failing to identify and report PSCs can lead to criminal penalties for both the company and its officers, including fines and possible prosecution.

Reporting PSC Information to Companies House

When a company is incorporated, PSC details must be provided during registration. However, this information must also be kept accurate over time.

If there are changes, such as a PSC selling shares, a new PSC being appointed, or existing control levels changing, these updates must be reported promptly to Companies House.

This update is usually made when you file annual confirmation statement, which ensures all PSC and shareholder information remains accurate and compliant.

Steps to Update PSC Information

  1. Identify the change — for example, if a shareholder now holds over 25% of shares.

  2. Update your internal PSC Register immediately.

  3. Notify Companies House within 14 days of the change.

  4. Submit the update through your company’s next filing to confirm accuracy.

By following these steps, you can maintain compliance and avoid legal complications.

What Happens If You Don’t Report PSC Information?

If a company fails to keep an accurate PSC register or does not report changes to Companies House, it can face significant consequences. This includes official warnings, financial penalties, or being struck off the register. Company officers may also face personal liability.

Regularly reviewing your records and ensuring that control information is accurate helps you maintain compliance and transparency in line with UK company law.

Key Takeaway

A Person with Significant Control (PSC) is a crucial part of your company’s legal framework. Keeping PSC information accurate and up to date demonstrates transparency and compliance with Companies House regulations. Always update your records and report any changes promptly, especially when you file annual confirmation statement to confirm your company details.