From 6 April 2016, the Small Business, Enterprise & Employment Act 2015 is introducing new rules on identifying and recording who owns and controls UK companies and LLPs.
These entities will have to collect and keep information about people with significant control over them (PSCs). This includes those who own or control – either directly or indirectly – more than 25 per cent of the firm.
The new requirements necessitate companies to:
- Keep a PSC register
- Take reasonable steps to identify those who should be registered on the PSC register
- Record the PSC’s details and keep the register up to date
- Make the register available for public inspection
- Provide all this information to Companies House from 30 June 2016
BJ Chong, a partner and company and commercial law specialist with Palmers said: “This is a significant change to UK company law and will affect all UK companies, with the exception of listed public companies.
“Even if a company has no interests to be registered or it is dormant, it must still keep a register as criminal sanctions may apply for non-compliance.
“The Government is finalising the details of the new regime and it is expected that the draft statutory guidance will be in final form shortly. I would strongly urge any company affected by this change to seek advice because failing to do so will have serious legal repercussions.”
For further information on corporate legislation affecting your business please contact us.