Most people have heard of a limited company director and are aware that a limited company is required to have at least one director, a lesser known position is a 'person with significant control' (PSC).
This position isn't as openly discussed as a person with significant control is a title given to the beneficial owner of the limited company in question. Therefore they are typically less visible to the company as they are not responsible for the day-to-day operations unlike a limited company director who's primary responsibility is ensuring the company operates efficiently for the benefit of the shareholders, and in the case of a private limited company, the person with significant control.
Who can be a Person with Significant Control?
The criteria outlined by Companies House for an individual to be eligible as a person with significant control is relatively straightforward. A PSC is commonly an individual who is able to satisfy one or more of the criteria below:
- Holds, either directly or indirectly, more than 25% of the shares in the company
- Holds, either directly or indirectly, more than 25% of the voting rights in the company
- Holds the right, either directly or indirectly, to appoint or remove a majority of the board of directors of the company
- Has the right to exercise significant influence or control over the company
- Has the right to exercise or actually exercises significant influence or control over the activities of a firm or trust which is not a legal entity but would satisfy any 1 of the first 4 conditions if they were an individual
If there are multiple individuals who meet the criteria above then more than one individual can be a person with significant control of the company.
What information do Companies House need from a Person with Significant Control?
When you are registering a new person with significant control for your company with Companies House you must confirm specific details with your prospective individual before sending their information to Companies House. The information that you will need is:
- Their Name
- Their Date of Birth
- Their Nationality and country of residence
- A correspondence address - known as a 'Service Address'
- Their home address (this will not be disclosed)
- The date they became a PSC of the company - Entered on the PSC register
- The date they confirmed their details
- All natures of control which apply
The final point relates to the level of their shares and voting rights within the following categories:
- Over 25% up to (and including) 50%
- More than 50% and less than 75%
- 75% or more
Verifying the Identity of a PSC
As of November 2025, Companies House rolled out a new policy of Identity Verification. This policy was part of the new Economic Crime and Corporate Transparency Act 2023 (ECCTA) where all persons with significant control must verify their identities with Companies House. Although this may seem daunting we are happy to put your minds at ease as we provide Identity Verification through our software.
All that your company's persons with significant control will need to do is provide us with 'Proof of Address' and 'Proof of Name'. Then as we are an Authorised Corporate Service Provider (ACSP) with Companies House, we will be able to verify their identity and upon the successful verification, get Companies House to email over their Verification Number in a flash.
What are a Person with Significant Controls Responsibilities?
The primary responsibilities of a person with significant control are keeping up-to-date and accurate information stored on the Companies House register.
- Identification of all PSCs - If you are an individual that meets the criteria of being a PSC then you must identify yourself to Companies House
- Maintain a PSC Register - The company that you are a PSC of must maintain an accurate PSC Register which must be readily available for inspection
- Reporting to Companies House - All PSC's details, as discussed in our 'What information' section, must be submitted to Companies House
- Verified Identity - All PSCs must verify their identities with Companies House
What are the repercussions for failing their duties?
If a company's PSCs have not complied with the requirements above then Companies House are able to impose substantial financial penalties. Although it is important to note that in more serious cases Companies House are also able to seek criminal convictions. The most likely reason for Companies House seeking criminal convictions is if the company fails to maintain an accurate PSC register as this is a legal requirement and failure to keep up-to-date can lead to a maximum sentence of 2 years imprisonment is able to be imposed.
Also if your PSCs do not follow their requirements they will also be putting the officers (directors and company secretary's) of the company at risk of being held liable for the PSCs neglect of their responsibilities.
Looking For Further Information?
Hopefully you have enjoyed this article today. If you are looking for more information on topics related to the regulations and legislations that govern your small business, feel free to explore our Knowledge Base. If you are looking for any further information, do not hesitate to contact us.
