If you’ve ever checked your company record on Companies House or noticed the acronym PSC on your Vestd dashboard, you might have wondered what it means, and why it matters.
PSC stands for Person with Significant Control, and it’s a cornerstone of UK corporate transparency. Every limited company must know who its PSCs are, record them accurately, and report them to Companies House.
But while PSCs are essential for compliance, they also reveal something deeper: who really controls your company.
Understanding this goes beyond legal duty. It’s about clarity, credibility and trust.
This guide explains what PSCs are, how to identify them, what your responsibilities are as a founder, and why maintaining a clear PSC record matters more than you might think.
A Person with Significant Control (PSC) is anyone, whether an individual or company, who ultimately owns or influences a business. They may hold shares, voting rights, or decision-making power that allows them to shape the direction of the company.
According to Companies House, a PSC is any person or entity that meets one or more of the following conditions:
Ownership. Holds more than 25% of the company’s shares.
Voting rights. Controls more than 25% of the company’s voting rights.
Board control. Has the right to appoint or remove a majority of the board of directors.
Influence. Exercises (or has the right to exercise) significant influence or control over the company.
Most businesses have one or two PSCs who meet these tests, but in more complex share structures, there may be several, including parent companies, trusts, or partnerships.
In short, PSCs are the people or entities with real, practical control, even if they don’t run day-to-day operations.
Not all control comes from ownership. Someone may not hold many shares but still have influence that shapes company strategy or decisions.
For example, a person could be a PSC if they:
Companies House defines ‘significant influence’ as the ability to direct company policies, financial strategy, or operations without necessarily holding a formal title or majority shareholding.
For example, a founder could sell most of their shares but retain a special ‘golden share’ that gives them power to veto key decisions. Even with minimal ownership, that person remains a PSC due to their control rights.
PSCs aren’t always visible on the cap table, but their influence still counts.
The PSC register was introduced in 2016 under the Small Business, Enterprise and Employment Act to make UK companies more transparent.
Before then, it was relatively easy for individuals or corporations to conceal beneficial ownership through layers of holding companies or offshore entities.
The PSC framework changed that by requiring all UK companies to:
Identify who truly controls the business.
Record those individuals or entities internally.
Publish that information through Companies House for public visibility.
This transparency helps:
Clear ownership records aren’t just about credibility as much as compliance.
Investors, lenders, and partners all look for straightforward governance structures because they reduce friction during due diligence and signal that a company takes transparency seriously.
A clean PSC record is often the first indicator that a business is well run.
Every limited company in the UK must keep a PSC register, even if there are no PSCs to report.
Here’s what’s required by law:
Identify your PSCs and confirm their information.
Record their details in your internal PSC register within 14 days.
Submit the information to Companies House within another 14 days.
Update the register promptly if anything changes (e.g. share transfer, new director).
Confirm the accuracy of PSC details annually via your confirmation statement (CS01).
Failing to maintain or update this register is a criminal offence, and both the company and its officers can face penalties.
When adding a PSC to your register, you’ll need to collect and confirm:
Companies House recommends verifying information directly with the individual or their representatives. You must also retain supporting records (such as share certificates or legal agreements).
Your PSC register should never be empty. If there are no qualifying individuals, you must record a statement confirming that fact.
Sometimes, identifying PSCs isn’t straightforward, especially if your company sits in a chain of ownership, includes trusts, or has overseas investors.
If that’s the case, you must take reasonable steps to investigate. This includes:
If no PSC can be confirmed, your register must state the steps you took and remain under review. Leaving it blank is not allowed.
Failing to identify or declare PSCs is a criminal offence and may trigger fines or prosecution.
You don’t have to know everything, but you must show you’re actively finding out.
Example 1: straightforward ownership
Alex holds 70% of the shares in BrightCo, while Jordan owns 30%. Both exceed the 25% ownership threshold, so both are classed as persons with significant control (PSCs).
Example 2: indirect control
Alex owns 70% of BrightCo and Jordan owns 30%. Morgan doesn’t hold any shares but oversees a trust with the power to block key company decisions.
All three qualify as PSCs. In the case of Morgan, through significant influence or control.
Example 3: layered ownership
Summit Ltd owns 85% of BrightCo. Horizon Holdings owns 65% of Summit Ltd.
The individuals who ultimately control Horizon Holdings are also PSCs of BrightCo, even though their ownership is indirect.
These scenarios show how influence flows up the ownership chain. The law focuses on who can make decisions, not just who holds shares.
A PSC isn’t always a person. A Relevant Legal Entity (RLE), such as another company, can also qualify if it:
If your company is owned by another company that meets these criteria, you must record that RLE in your PSC register.
If an overseas company is involved, it can only be recorded as an RLE if it’s publicly listed on an approved exchange. Otherwise, you’ll need to trace ownership further up to find the ultimate individual controller.
Ownership transparency flows up the chain. Every layer must lead to a visible controlling entity or person.
If you spot an error in your PSC register, act fast. You can correct records by filing an RP04 form with Companies House, which replaces inaccurate details with verified ones.
Why this matters:
Compliance. It’s a legal requirement to keep PSC data accurate.
Transparency. Clear records strengthen investor trust and reduce risk during due diligence.
Avoiding penalties. Late or incorrect filings can lead to fines or investigations.
You can find the RP04 form and instructions on the Companies House website.
Understanding who controls your company isn’t just about compliance, it’s about telling the world, from investors to employees, that you value transparency.
Clear PSC records demonstrate integrity, help you raise capital faster, and reduce friction during audits or exits.
So the next time you see PSC on your company record or Vestd dashboard, remember: it’s not red tape. It’s part of running a business that people can trust.
If your company uses Vestd, PSC management is built in. You can automatically update your PSC register, adjust it when ownership changes, and keep all shareholder data synced with your cap table. This keeps your records accurate and compliance effortless.
Vestd also stores all related company records in one place, including share certificates, resolutions, option agreements and stock transfer forms.
Whenever you issue shares or make changes that affect PSC status, the platform automatically generates the required documents and files the updates with Companies House, keeping everything securely organised and audit-ready.
You can opt out if your structure is complex or overseas, but for most UK startups, managing PSCs through Vestd keeps everything simple and transparent.
Want to see how it works? Book a call with our team.
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