The Small Business, Enterprise and Employment Act 2015 has now come into force and various changes have been implemented. One which you need to be aware of is the requirement for companies to record on a register from 6 April 2016. This is known as a PSC Register with PSC meaning a “person with significant control”.
A PSC is anyone in a company or LLP who meets one or more of the conditions listed below. This is a person who:
- Owns more than 25% of the company’s shares
- Holds more than 25% of the company’s voting rights
- Holds the right to appoint or remove the majority of the directors
- Otherwise has the right to exercise, or actually exercises significant influence or control
- Holds the right to exercise or actually exercises significant control over an arrangement isn’t a legal entity (e.g. a trust), but would satisfy any of the first conditions it were an individual.
The main reason this has been brought in is to encourage companies to be more open around who owns and controls what UK companies. This move should hopefully increase UK’s image as a fair playing field to do business in.