What are the Changes to Companies House PSC from June 2017?
- Apr 4
- 3 min read
Understanding the changes to Companies House’s register of People with Significant Control (PSC) from June 2017 is essential for company directors, shareholders, and compliance officers. These updates affect how companies identify and report individuals who hold significant influence or control. This post explains what changed, why it matters, and how companies can stay compliant.
Background on PSC Register
Before June 2017, companies were required to maintain a register of people with significant control, but the rules were less detailed. The PSC register aims to increase transparency about who really controls companies, helping to prevent fraud, money laundering, and tax evasion.
The PSC register includes individuals or legal entities who:
Hold more than 25% of shares or voting rights
Have the right to appoint or remove a majority of the board
Exercise significant influence or control over the company
Have significant control over a trust or firm that meets these conditions
The changes introduced in June 2017 refined these rules and added new requirements for reporting.
Key Changes Introduced in June 2017
1. Expanded Definition of PSC
The definition of who qualifies as a PSC became more detailed. Companies must now consider not only direct ownership but also indirect control. For example, if a person controls a company that owns shares in another company, that person may be a PSC.
This change means companies must look beyond immediate shareholders and consider complex ownership structures, including trusts and partnerships.
2. New Reporting Deadlines and Penalties
Companies must report PSC information to Companies House within 14 days of:
Becoming aware of a new PSC
Changes to existing PSC details
Failure to comply can result in fines or criminal penalties for both the company and its officers.
3. Verification and Confirmation Statements
Companies House introduced stricter verification processes. Companies must confirm the accuracy of their PSC register annually through confirmation statements. This replaced the annual return system and requires companies to review and update PSC information regularly.
4. Increased Transparency for Overseas Entities
The changes also affect overseas companies that have UK branches. These entities must maintain PSC registers for their UK branches and report accordingly, increasing transparency for foreign-controlled companies operating in the UK.
Practical Impact for Companies
More Detailed Record-Keeping
Companies must maintain detailed and accurate records of PSCs, including:
Full name
Date of birth
Nationality
Residential address
Nature of control
This information must be kept up to date and made available to the public, except for residential addresses which are protected.
Increased Compliance Workload
The changes require companies to invest more time and resources into compliance. Directors and company secretaries must ensure that PSC information is collected promptly and reported correctly.
Examples of PSC Situations
A shareholder owning 30% of shares directly is a PSC.
A person who controls a trust that owns 40% of shares is a PSC.
A director with the power to appoint the majority of the board qualifies as a PSC, even without share ownership.
Consequences of Non-Compliance
Companies that fail to comply with PSC rules risk:
Financial penalties up to £5,000
Criminal charges against officers
Damage to reputation and trust
How Companies Can Prepare and Stay Compliant
Conduct a Thorough Review
Companies should review their ownership structures and identify all PSCs, including indirect controllers.
Update Registers Promptly
Ensure the PSC register is updated within 14 days of any changes or new information.
Train Staff and Directors
Make sure everyone involved understands PSC requirements and deadlines.
Use Professional Advice
Consider consulting legal or compliance experts to navigate complex ownership structures and reporting rules.
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