A Person with Significant Control (PSC) is an individual or corporate entity that owns shares in the company and meets specified conditions, known as nature of control. Every company is legally required to maintain records of their Persons with Significant Control, and this will be published on Companies House. A company’s PSC register cannot be blank.
The nature of control identifies those that hold at least one or more of the following:
1. More than 25% of shares in the company; or
2. More than 25% of voting rights in the company; or
3. The right to appoint or remove a majority of the board; or
4. Has the right to exercise, or actually exercises, significant influence or control over the company.
If an individual or corporate shareholder meets criteria 4, they will not be able to any of the previous criteria.
Conditions 1 and 2 are recorded in the following increments:
- Those with more than 25% but less than 50%
- Those with more than 50% but less than 75%
- Those with 75% or more
If you are unsure who your PSCs are, we can help you identify them to submit their details to Companies House upon incorporation of your company.
Upon incorporation of your company, we can help you to identify your PSCs. If you have registered your company without any PSCs, identify anyone with over 25% of shares or voting rights within the company, or someone who has the right to exercise influence or control over the company and notify them and Companies House that they qualify as PSCs.
Also Read: Making Tax Digital
A company may not have any shareholders that meet any of the criteria. In this case you will need to notify Companies House that there is no registrable person or relevant legal entity in relation to the company. If you own 25% of shares in a company, you will not qualify as a PSC as the minimum threshold is more than 25%.
As a company can be a shareholder, it could also be the PSC and referred to as the Registrable Relevant Legal Entity (RRLE). You must maintain records of all RRLEs, and the details will also be published on Companies House. An overseas company cannot qualify as an RRLE for a UK company.
Any changes in PSC details, such as a PSC ceasing to hold control or a new PSC, should be reported to Companies House as soon as the details change. At 1st Choice Incorporations, we can assist you with reporting any changes in detail for your company, contact us for more information or support.
