July 5, 2016

Commencing on 30 June 2016 companies now have to declare who owns or controls them to Companies House.

The “People with Significant Control” (PSC) register includes information about the individuals who own or control companies including their name, month and year of birth, nationality, and details of their interest in the company.

From 30 June 2016, UK companies (except listed companies) and limited liability partnerships (LLPs) need to declare this information when issuing their annual confirmation statement to Companies House.

A “person of significant control” is someone that holds more than 25% of shares or voting rights in a company, has the right to appoint or remove the majority of the board of directors or otherwise exercises significant influence or control.  This information will form a central public register of people with significant control, which is free to access.

The Government says that the UK has high standards of business behaviour and corporate governance.  The overwhelming majority of UK companies contribute productively to the UK economy, abide by the law and make a valuable contribution to society.  However, there are exceptions.

Some of the features of the company structure that make it good for business also make it attractive to criminals.  Companies can be misused to facilitate a range of criminal activities, from money laundering to tax evasion, corruption to terrorist financing.  Occasionally, the Government says, some individuals running companies do not conduct themselves in accordance with the high standards expected in the UK, posing a risk to other companies and consumers alike.

In the Government’s view, information about the ownership and control of UK corporate entities will bring benefits for law enforcement, business, civil society and citizens.  By making this information publicly available, free of charge, the Government says that it is setting a standard that it is persuading other countries to follow.  To read the Government’s press release in full, click here.