A Person with Significant Control (PSC) is an individual or entity that has substantial influence or authority over a company. Companies registered in the United Kingdom are required by law to identify their PSCs and report them to Companies House. Similar regulations exist in other countries with some variations (this is often referred to an Ultimate Beneficial Owner).
Who Qualifies as a PSC?
A person is considered a PSC if they meet at least one of the following criteria:
- Share Ownership – They hold more than 25% of the company’s shares.
- Voting Rights – They control more than 25% of the company’s voting rights.
- Board Control – They have the power to appoint or remove the majority of directors.
- Significant Influence or Control – They have significant influence over the company. This nature of control cannot be used in conjunction with the above three nature of controls.
Why is the PSC Register Important?
- It promotes transparency in company ownership.
- Helps prevent financial crimes, such as fraud and money laundering.
- Ensures businesses comply with legal and regulatory obligations.
