The Small Business, Enterprise and Employment Act 2015 which came into force on 26 March 2015 and places an obligation on both LLP’s and Limited companies to have a register of any persons who have significant control over the company from 6 April 2016. This requirement will also extend to companies which are subsidiaries or dormant.

The only exceptions are for certain publicly traded companies: that is companies which are already subject to the transparency measures of the Financial Conduct Authority’s Disclosure and Transparency Rules and companies with voting shares admitted to trading on a regulated market in the European Economic Area or on specified markets in the USA, Switzerland, Japan and Israel.

The information to include within the register is as follows:

  • Individual name
  • Service address
  • Nationality
  • Date of birth
  • Country of residence

Companies must update information about relevant individuals and legal entities that have control over it and accordingly maintain and update their register. There will be criminal sanctions for companies who fail to comply with the new register regime.

The intention of the register is to increase transparency in the control of companies. This information will then be available for public inspection from June 2016.

Companies, particularly those with complex structures, may find this new requirement an administrative challenge.

Therefore, if you would like more information about how your company could be affected by The Small Business Act, please contact Stuart Mullins from our Business Services Team. We’re on hand to help advise you and your company.