Determining Your UK Entity’s People with Significant Control: A Comprehensive Guide

Navigating the intricacies of determining People with Significant Control (PSCs) within your UK entity is paramount for ensuring compliance and transparency. This comprehensive guide aims to demystify the process, providing a clear roadmap for identifying individuals who wield significant influence over your organization’s operations and decision-making.

How to identify your company’s PSC if it’s owned or controlled by a UK legal entity

In situations where a legal entity has an overseeing role in your corporation’s operations or control, its particulars ought to be registered on the PSC record if it meets the criteria for relevance and registrability. A legal entity assumes relevance if it satisfies one or multiple conditions listed below:

  • Owns over 25% of your company’s share capital.
  • Controls over 25% of the voting rights.
  • Has the mandate to hire or fire the majority of directors.
  • Keeps its PSC register and is under UK PSC regulations.
  • Has voting shares listed on a regulated market in the UK, European Economic Area, or particular markets in Switzerland, the USA, Japan, or Israel.

A Relevant Legal Entity (RLE) becomes registrable if it is the first such entity in your company’s ownership structure. Therefore, it becomes crucial to check your corporation’s register of members or articles of association to ascertain information pertaining to shareholders and voting rights.

Case Study

For instance, a UK legal entity named “Company B Limited” owns all shares in another firm referenced as “Company A Limited”. These shares carry attached voting rights. Since Company B Limited operates under UK PSC regulations and trades on a regulated UK market, it therefore qualifies as a PSC. Hence, its specifics, such as the proportion of share ownership and voting rights, must be duly recorded on the PSC register of “Company A Limited”.

Company A Limited should also verify whether “Company B Limited” possesses the power to hire or fire the majority of its directors, and record this information accordingly. However, there is no necessity to log the details of the ultimate beneficial owner of “Company B Limited” on the PSC Register of “Company A Limited”. For companies with intricate ownership structures, it is recommended to refer to our guidance on our website or seek legal advice.

Submitting PSC Information

The most efficient manner to provide us with your PSC data is through our online portal. It’s swift, free, and all you have to do is establish an account.

Mastering the identification of People with Significant Control (PSCs) is vital for UK entities to uphold regulatory compliance and promote transparency. This comprehensive guide equips businesses with the knowledge and tools necessary to navigate the complexities of PSC regulations, ensuring they can fulfill their legal obligations with confidence.

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