Every UK company must maintain a record of its People with Significant Control, or PSCs. This is not a suggestion or best practice. It is a legal requirement, introduced to make business ownership more transparent and to prevent misuse of company structures.

Despite this, many companies either do not fully understand what PSC means or fail to keep the record up to date. That creates risk not just in terms of fines and penalties, but in how your business is perceived by banks, investors, and regulators.

In this blog, we explain what a PSC is, why the register matters, how to stay compliant, and what can happen if you ignore it.

What Is a Person with Significant Control?

A PSC is someone who owns or controls a UK company. Not every shareholder is automatically a PSC, and not every PSC is obvious at first glance. The law sets out clear criteria to help identify who qualifies.

A person is considered a PSC if they meet one or more of the following:

1. They hold more than 25 percent of the shares in the company

2. They hold more than 25 percent of the voting rights

3. They have the right to appoint or remove the majority of directors

4. They have the right to exercise significant influence or control

5. They control a trust or firm that meets one of the above conditions

This includes both individuals and legal entities, such as another company, that ultimately control the business.

In many companies, the PSC is simply the founder or main shareholder. But in group structures, family-owned firms, or companies with multiple shareholders, the position may be less obvious.

What Is the PSC Register?

The PSC register is a document that records the identity and details of each person who meets the PSC definition. Every company must:

• Identify all PSCs

• Confirm their details

• Record the information in the internal PSC register

• Submit the details to Companies House

• Update the register whenever a change occurs

You must keep this information up to date and available for inspection. Companies House also holds a version of your PSC register on public record.

What Information Must Be Recorded?

The PSC register must include the following information for each individual PSC:

• Full name

• Date of birth

• Nationality

• Country of residence

• Service address

• Usual residential address (not displayed publicly)

• The date they became a PSC

• The nature of their control (such as shareholding or voting rights)

• Any restrictions on disclosing the PSC information

If the PSC is a legal entity, the register must include its corporate name, registered office, legal form, and registration details.

Why the PSC Register Exists

The PSC regime was introduced in 2016 as part of the UK government’s effort to improve corporate transparency. The goal was to:

• Prevent the use of companies for illegal or hidden purposes

• Help law enforcement and regulatory bodies trace beneficial ownership

• Give the public more visibility into who controls UK businesses

This is part of a wider international effort to combat tax evasion, fraud, and money laundering. As a result, PSC compliance is taken seriously by Companies House and HMRC.

It also plays a role in due diligence. Lenders, investors, and partners will often check your PSC register to assess the integrity and structure of your business.

Common Mistakes Companies Make

Some of the most frequent errors with PSC compliance include:

Failing to identify all PSCs: If your company has a complex ownership structure, it is easy to overlook indirect control or linked entities.

Assuming directors are automatically PSCs: Being a director does not make someone a PSC unless they meet the control thresholds.

Not keeping the register up to date: If shareholdings change, or if someone becomes or ceases to be a PSC, the register must be updated within 14 days and reported to Companies House within another 14 days.

Omitting the register entirely: Some companies assume their small size or simplicity means they do not need to keep a PSC register. This is not true. All companies must comply.

Providing incomplete or incorrect information: Mistakes in names, addresses, or the nature of control can result in rejection of filings or compliance issues.

Relying on software alone: While cloud systems may include fields for PSCs, it is still your responsibility to understand and report the correct information.

What Happens If You Do Not Comply?

Non-compliance with PSC rules is a criminal offence. Directors who fail to keep the PSC register properly can be fined or prosecuted. The company may also face sanctions.

Consequences of non-compliance include:

• Financial penalties for the company and its directors

• Legal action from Companies House

• Reputational damage, especially if flagged during due diligence

• Delays in funding, partnerships, or contract approvals

• Loss of banking facilities in some cases

It is also worth noting that failure to respond to a request for PSC information from Companies House or HMRC can lead to enforcement action.

How to Stay Compliant

The good news is that PSC compliance is manageable with the right process. Here is what we recommend:

Identify all PSCs accurately: Review shareholdings, voting rights, and control arrangements to confirm who qualifies. If needed, get help from your adviser.

Maintain a complete register: Keep the register with your other company records. Make sure it includes all required information and reflects any changes.

Report updates promptly: You must notify Companies House within 14 days of any change. That includes a new PSC being added, someone ceasing to be a PSC, or a change in the nature of control.

Review regularly: Check your PSC register quarterly or when events occur, such as share transfers or director changes.

Use a trusted adviser: Work with someone who understands the rules and can ensure filings are made correctly and on time.

How AFG Helps Companies Stay on Top of PSC Rules

At Allied Financial Group, we take care of the details that protect your business. PSC compliance is not just about avoiding penalties. It is about showing that your company is structured clearly, run properly, and open to scrutiny when needed.

We help you:

• Identify all PSCs based on legal definitions

• Maintain an accurate, compliant PSC register

• Update Companies House whenever changes occur

• Align your PSC information with your share register and director records

• Keep your Confirmation Statements and other filings consistent

We also explain the rules in plain English, so you are never left guessing who qualifies or what needs to be submitted.

Our goal is to keep your business clean, clear, and credible - whether you are applying for funding, onboarding clients, or simply building a company that runs properly from the inside out.