From 30th June onwards, UK companies, Societates Europaeae (SEs) and Limited Liability Partnerships (LLPs) will be required to keep a record of people with significant control within their company, a PSC register. The PSC register is designed to increase transparency over who controls UK companies, and to ultimately help investors when they are considering an investment in a company.
A PSC is an individual who holds at least one of the following:
- More than 25% of the company’s shares
- More than 25% of the company’s voting rights
- The right to appoint/remove the majority of the board of directors
- The right to exercise significant influence or control over the company
Companies will be required to report the PSC register on the new Confirmation Statement, which is due to replace the current Annual Return at the end of June 2016. The purpose of the Confirmation Statement is the same as the Annual Return, to ensure that the company’s information with Companies House is up-to-date. However, it should be a more streamlined process, as previously filed information will not have to be resubmitted. Companies will just need to ‘check and confirm’ that the information has remained unchanged.
Contractors will need to ensure they communicate any changes to their personal details or limited company to their accountant as quickly as possible so that the register is always fully up to date.
Unlike the current Annual Return system whereby there is a set date each year that the return needs to be made up to, the Confirmation Statement can be made at any time provided that no more than 12 months has elapsed between statements.
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