Corporate Transparency and Register Reform

Need some support with the new PSC register?

April 26, 2016 2:15 pm Published by
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Need some support with the new PSC register?

By now, countless numbers of guides and communications were written about the new Persons with Significant Control (PSC) registration legislation, which has come to effect from 6 April this year.  The new legislation, which is part of The Small Business, Enterprise and Employment Act 2015, will require all UK companies (other than publicly traded companies) to maintain a register of those people who have significant control over the company. The register will contain information on individuals who ultimately own or control more than 25% of a company’s shares or voting rights, or who otherwise exercise control over the company and its management intending to provide transparency around who owns and controls UK companies.

PSC Register

The new regime requires unlisted UK companies (including LLPs) to take reasonable steps to identify those “people with significant control” over them and record their details. As an accountant, this will most definitely affect your clients due to the following reasons:

  • Every live incorporated company in the UK will need to adjust their records and reflect it in the forthcoming Confirmation Statement that replaces the annual return.
  • The allotment and transfer of shares has now become more complex as consideration has to be given to who may now qualify as a PSC and how this is reported.
  • As of the 30th of June, failure to comply with the regime is a criminal offence punishable by a fine and/or up to 2 years imprisonment.

The government has issued draft statutory guidance, which may be referred to here.

However, as company secretarial services experts we are able to provide you and your clients with cost effective solutions to help you comply with the new regulations:

  1. Click here to review more detailed information about the new regime including prescribed wording and a copy of the registration forms.
  1. FirstOrder secretarial software has been updated to automatically collect all the key data to complete the new PSC register including the prescribed wording detailing the ownership. Once completed, the register will be updated automatically when any changes to share capital are made. Changes such as allotments, transfers, purchase of own shares, and change of rights will automatically update the register.

As always, we are here to help and answer any questions so please get in touch if you require any additional support or want to review your options further.

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This post was written by Adrian Smart

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