From 6 April 2016, UK companies (both those limited by shares and guarantee) and LLPs must keep a register of people with significant control over the company or partnership.
The intention behind this change is to improve transparency around who owns and controls UK businesses and by doing so is a measure to improve the UK’s reputation as a fair place to do business.
From 30 June 2016 companies and LLPs will also have to provide this information to Companies House when their annual return/confirmation statement is submitted.
This is a requirement under The Small Business, Enterprise and Employment Act 2015 and The Register of People with Significant Control Regulations 2016 and it applies whether or not the companies and LLPs are dormant.
Who is a person of significant control?
A person of significant control (“PSC”) is anyone in a company or LLP who meets one or more of the conditions listed in the legislation being:
- direct or indirect ownership of more than 25% of the shares in the company
- direct or indirect control of more than 25% of the voting rights in the company
- direct or indirect right to appoint or remove a majority of the directors of the company
- the actual exercise or right to exercise significant influence or control over the company
- the actual exercise or right to exercise significant influence or control over the activities of a trust or firm which itself meets one of or more of the first four conditions
The PSC’s details will be visible at on the public register at Companies House however the residential address will not be available and the day of birth will be suppressed.
Get in touch
If you would like to find out more about the changes, and how they might affect you, your company or LLP, please get in touch.