Employment law

Micro firms must declare people with significant control, as register goes live

Fred Heritage | 1 July 2016 | 8 years ago

black businessman
The register for declaring People with Significant Control (PSC) to Companies House went live on 30 June 2016
Small and micro business owners will from now on be required to declare their firm’s People with Significant Control (PSC) to Companies House, as the register goes live.

From 30 June 2016, it will be necessary for managers of Britain’s smallest companies to make personal information about the people that part-own or control their firm known to the government, including the names, dates of birth and nationalities of these individuals, as well as specific details to do with their interest in the firm.

All UK businesses and limited liability partnerships (LLPs), apart from listed companies, need to declare the information when issuing their annual statement to Companies House.

The government classifies a PSC as someone with more than a 25 per cent of shares or of voting rights on a company’s board, has the right to appoint or remove the majority of a company’s directors, or exercises other significant influence or control.

The information provided will be added to a central public register of PSCs, which will be made free to access.

First proposed by David Cameron as part of the Small Business, Enterprise and Employment Act 2015, the aim of the register is to increase transparency and unmask those businesses that arent playing by the rules and have something to hide.

Commenting on the register’s introduction earlier this year, business minister Baroness Neville Rolfe said: This register is the first of its kind in the world and will help us tackle abuse of corporate entities.

Despite the high standards of business behaviour, the UK maintains, the PSC register recognises that certain aspects of the company structure also make criminal activity attractive. Companies can be abused to facilitate money laundering, tax evasion or terrorism, for example.

Read on for our expert’s top five tips on how to boost productivity in your micro firm over the summer months.

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