HR Fred Heritage · 7 April 2016
Why micro business owners must declare people with significant control
In an attempt to tackle abuse of corporate structures and create an environment of trust and accountability around British business, the government requirement that companies must hold a register of people with significant control (PSC) came into force on 6 April. From 30 June 2016, unlisted UK companies of any size as well aslimited liability partnerships will need to submit a register including information about the individuals who own or control companies including their name, date of birth, nationality and details of their interest in the business. This information will need to be declared when firms issue annual statements to Companies House. According to government guidelines, a person of significant control is an individual that holds more than 25 per cent ownership or voting rights in a company, or who has the right to appoint or remove the majority of a director board. Commenting on the new measure, business minister Baroness Neville Rolfe said: Companies that disguise who owns or controls them are not playing by the rules and have something to hide. This register is the first of its kind in the world and will help us tackle abuse of corporate entities.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.