As a small business owner, it is key that you keep track of upcoming government legislation. This will allow your firm to trade effectively, without incurring financial penalties. You should take note of the fact that you now have to disclose the names of ‘People with Significant Control’ of your business.
Business administration
If you set up a limited firm, your company will have to adhere to a number of key filing obligations under UK law. This includes a range of tasks, from maintaining annual accounts to submitting company tax returns to the government – which are both key responsibilities of a company director.
Your firm will now also have to create and maintain a ‘People with Significant Control’ register. In April 2016, the government announced that from the 30th June 2016, all businesses will be required to adopt these registers, so they can disclose information concerning the parties that control or own their firm. This legislation has now come into effect, so what does it mean for your business?
People with Significant Control
You are now obligated to include the name, birthday, nationality of the people who own or control your firm, along with any details of their interests in the firm, on your business’ register. According to Start-ups, a business portal, ‘People with Significant Control’ refers to those who:
- Possess over 25% of your company’s shares of voting rights.
- Have the right to appoint or remove the majority of your firm’s board members.
As a UK-based company, you will have to declare this information to the government when submitting your annual statement to Companies House. This also applies to limited liability partnerships. Commenting on the introduction of People with Significant Control registers, Department for Business Minister Baroness Lucy Neville-Rolfe said:
“Companies that disguise who owns or controls them are not playing by the rules and have something to hide. This register, the first of its kind in the world, will help tackle abuse of corporate entities. This is part of our commitment to creating an environment of trust and accountability for business.”
Streamline business administration
With the introduction of People with Significant Control registers, your firm will have a new administrative burden to bear. It is in your best interests to streamline administrative tasks whenever possible, so you can focus your energies on making your firm a success. If you utilise Turner Little’s miscellaneous corporate services, you can receive he support you need to ensure that your firm’s administrative issues are handled effectively.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
