All UK companies establish and maintain a Registry of People with Significant Control (PSC Registry). Each company needs to take reasonable measures to determine whether its business needs a PSC registry. This would occur especially if you recognise that your company has workers who have control or power over business operations. You have to record the details of these persons on the PSC registry of your business.
The things that constitute appropriate measures vary from company to company, and you must ensure that you obey the rules as an owner of a company. You might have to pay fines to HMRC for non-compliance if you fail to build and maintain a PSC registry.
Who can qualify for it?
You need to define, based on the size of an organisation and its structure, whether there are any entities in your organisation who have any significant control over the company's related legal entity. If they meet the following requirements, you will be able to classify them:
- They have the authority to hire and fire the majority of the company's board
- They have the right to exert control over the company's essential activities or control over a trust which is not a legal entity.
- They own 25% of the company's share and above.
You can then add them to your registry after you have found three such individuals in your business who will qualify for inclusion on your PSC registry. There are some difficult situations, however, where a little more hard work will be needed to set up the PSCs for your company. In the following cases, this may arise:
- A shareholder's agreement exists that bestow special rights upon certain shareholders
- Shareholders hold shares for someone else.
- The company has implemented articles of association.
What happens when there is no substantial control of a company?
If a company does not have any PSCs in your market, you may simply add a statement that says the same to your PSC register. However, if anything changes in the future, you can easily modify and update your PSC registry with your new listings.
Updating your company PSC registration
After all the PSC registration procedures have been completed, you must ensure that the list is updated on time. Always note that the PSC register should never be kept blank. Even though sometimes there are no PSC documents, you need to enter statements in the registry. You need to make some entries to state some logical steps to create your PSC list when setting up a new PSC register.