People of Significant Control

People of Significant Control (PSC)

The People of Significant Control (PSC) register is a publicly accessible database that provides transparency about individuals or entities that have significant control over UK companies. Introduced under the Small Business, Enterprise and Employment Act 2015, it is a key tool for improving corporate accountability and reducing tax avoidance, corruption, and opaque ownership structures.

What is the PSC Register?

The PSC Register lists all individuals and entities with significant control over a company, even if they are not directors. Companies are required by law to disclose these details to Companies House. The following qualify as people of significant control:

• Individuals holding more than 25% of shares in the company.
• Individuals with more than 25% of voting rights.
• Individuals with the power to appoint or remove directors.
• Individuals or entities with the ability to exercise significant influence or control over the company, or over a trust or entity that holds control.

The PSC Register applies to most UK companies, except public limited companies (PLCs). It is publicly available on the Companies House website.

Purpose of the PSC Register

The register was established to promote:

1. Transparency in business ownership and operations.
2. Accountability, aiding in the fight against tax avoidance and corporate corruption.
3. Alignment with G8 transparency goals.
4. Global leadership in data reform, ensuring the UK sets an example for other nations.

How the PSC Data is Used

The PSC Register has practical applications across various sectors, such as finance, insurance, and legal services. Key uses include:

• Identifying a company’s ownership structure and significant investors.
• Assessing potential conflicts of interest or risks associated with doing business.
• Tracing assets in international disputes.
• Monitoring leadership changes and governance in companies.

The register reduces risks in business dealings by providing clarity on company operations, allowing parties to make informed decisions.

Recent Updates and Legislation

Under the latest regulations, companies must:

• Keep their PSC information updated and report changes promptly to Companies House.
• Ensure compliance with sanctions and anti-money laundering laws, as PSC data is scrutinised for links to illicit activities.

The register plays a critical role in the UK’s efforts to combat economic crime, with tighter enforcement of Economic Crime (Transparency and Enforcement) Act 2022 provisions.

Useful Links for Further Reading

1. Companies House: PSC Guidance This page offers detailed instructions on identifying PSCs, maintaining compliance, and filing PSC information. Essential for businesses and professionals managing corporate governance.
2. Small Business, Enterprise and Employment Act 2015 The legislation that introduced the PSC Register. It’s a critical resource for understanding the legal framework behind the transparency measures.
3. Economic Crime Act 2022 Overview Explains recent updates to transparency and enforcement laws, reinforcing the importance of accurate PSC reporting.

For more detailed insights into company liquidation, explore our Business data product which provides extensive Company Data on all UK registered companies.