On 6th April 2016, the Small Business, Enterprise and Employment Act 2015 came into effect. As part of this law, UK Companies and Limited Liability Partnerships (“LLP’s”) are required to maintain a People with Significant Control (PSC) register. Turner Little outlines the key considerations of PSC register compliance for UK Small Businesses.

1. How Small Businesses Can Comply With the PSC Legislation
On 6th
April 2016, the Small Business,Enterprise andEmploymentAct2015 came intoeffect.Aspart
of thislaw,UK CompaniesandLimitedLiabilityPartnerships(“LLP’s”) are requiredtomaintainaPeople
with Significant Control (PSC) register. Turner Little outlines the key considerationsof PSC register
compliance for UK Small Businesses.
What is a PSC register?
At the 2013 G8 summit,worldleadersagreedtopromote corporate transparency.Thismeasure was
implementedbecause complex corporateownershipstructurescanmake itdifficulttodeterminewho
owns and controls businesses. As a member of the G8, the UK government is abiding by this
commitment by introducing PSC registers for UK Companies and LLPs.
A PSCregisterisdesignedtoshowwhoownsandcontrolsafirm. All LLPs,evensmallbusinesseswith
a single director,are nowrequiredto implementandmaintaina PSC registerfortheircompany. It is
vital to understandthe keyconsiderationsof complyingwiththislaw as a businessowner failingto
comply could be subject to criminal charges.
Persons of Significant Control
First, let’s look at who counts as a “person of significant control.” According to Small Business, this
termappliestoanypersonwho “substantiallyownsorcontrolsacompany.”If someone fallsintoone
of the followingfivecategories,theycountasa PSCand shouldbe addedtoyour firm’s PSC register:
 Own more than 25% of your business’ shares.
 Possess over 25% of your business’ voting rights.
 Have the power to remove the majority of your firm’s board of directors.
 Possess the right to exercise or actually exercise significant control or influence over your
venture.
 Has the right to, or can actually exercise, significant control or influence over a trust or
business which is not a legal entity, but satisfies any of the above mentioned conditions.
Who are your PSCs?
You needto identifyPSCsatyour firmand this will dependonitsset-up.Let’ssayyour company has
two shareholders who both possess 50% of its shares. As both shareholders surpass the 25% share
threshold,theybothcountasPSCsandshouldbothbe addedtoyourfirm’sPSCregister.Let’sassume
that in thisexample,all sharescarry one vote.You wouldalsoneedto note inyour PSC registerthat
bothshareholderspossessover25%of yourbusiness’votingrights,astheysatisfythiscriteriaaswell.
But what if things are more complex. For example, your company has five shareholders who each
possess 20% of shares? You would not need to add any of these shareholders to your PSC register,
because none of them surpass the 25% shares threshold. If they do not meet any of the other
conditions,yourfirmwouldnothave any PSCs,but your PSCregistermust neverbe blank.Legally,it
isacceptable foryour businesstohave noPSCsbut youmustmake a note of this on its PSC register.
How to set up your PSC register
So, if you fall under this criteria, how do you set up your PSC register? First, you are required by
legislationto“take reasonable steps”todetermine whetherthere are people withsignificantcontrol
overyour firm.Second,if thisappliestoyourbusiness,youare requiredtocontact the relevantPSCs
and confirm whether they meet one or more of the criteria for inclusion on your company’s PSC

2. register.If youcannotcontact a particularPSC,you shouldcontactotherswhomayknow the party in
question to determine the answer to this question.
Assumingthe PSCinquestiondoescomplywiththiscriteria,confirmthe relevantinformationneeded
to listthemonyour business’PSCregister.ByinputtingyourPSC’sdata,youcan create your register.
Once this is completed, you are required to confirm the information in your PSC register in your
business’ next ‘Confirmation Statement,’ which is to replace Annual Returns as of July 2016.
Make sure you keepthe informationincludedinyourfirm’sPSCregisterupto date.Also,ensure you
implementanynecessary changesif someoneceasestomeetPSCcriteriaoryourfirmreceivesanew
PSC. With the introduction of PSC registers, your duties as the director of a limited company will
expand, placing extra burdens on your valuable time. Utilise Turner Little’s miscellaneous corporate
services to access support on PSC register maintenance and filing issues.
Turner Little
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