Business Transparency Rules for Directors Explained in 2026

Directors must record conflicts of interest, maintain company registers, and ensure accurate PSC information is registered at Companies House. This includes identifying, verifying, and updating PSC details promptly.

What are the core transparency duties for directors?

Directors must record conflicts, maintain statutory registers, and disclose PSCs to Companies House.
Directors must operate under the Companies Act 2006 and related regulations. They must keep the company’s statutory books accurate, including the register of directors’ interests and the PSC register. They must verify beneficial ownership and ensure updates within 14 days of a relevant change to the PSC register and within 14 days for filing changes at Companies House.

Directors must authenticate identity when collecting PSC data. Three standard verification methods are: passport checks, driving licence validation, and address confirmation via utility bills. Firms typically validate using electronic ID services and documentary checks to authenticate PSC claims against public records.

Read our articles, PSC Reporting Requirements for UK Companies and Professional PSC Register Management Service to Stay Compliant.

How does a PSC register work, and who is a PSC?

A PSC is a person or legal entity with significant control; the PSC register records their details and the nature of control.
A PSC holds more than 25% of shares, more than 25% of voting rights, the right to appoint or remove the majority of directors, or exercises significant influence or control. Trusts or firms can qualify as PSCs. The PSC register records full name, date of birth, service address, usual residential country, nature of control, and the date they became a PSC.

Directors must ask company members and major stakeholders to confirm PSC status. If no PSC is found, directors must record that no registrable person exists and review the position annually. Failure to maintain a PSC register attracts civil penalties and possible criminal liability for the company and its officers.

What information must directors collect for PSCs?

Directors must collect legal name, birth month and year, service address, country of residence, nature of control, and supporting ID.
Required items include the PSC’s full legal name, month and year of birth, nationality, usual residential country, service address, and the date they became a registrable person. Directors must classify the nature of control using prescribed categories (for example, “more than 25% shares” or “right to appoint/remove a majority of directors”).

Directors must obtain documentary evidence to verify identity. Three verification steps: check government-issued photo ID, confirm address with a recent utility bill or bank statement, and corroborate share ownership via the company’s share ledger or independent filings.

When must directors update the PSC and register records?

Directors must update the internal PSC register within 14 days of a change and file changes at Companies House within 14 days of updating the register.
A “relevant change” includes a new PSC, a change like control, a PSC ceasing to have control, or a change in PSC data, such as address. Directors must record the change on the company’s internal PSC register first, then submit the prescribed form (usually a confirmation statement or PSC change notification) to Companies House.

Maintain contemporaneous records. Keep original verification documents for at least five years after the PSC relationship ends. This demonstrates compliance during audits or enforcement reviews.

What are directors’ duties when a PSC cannot be identified or verified?

Directors must make reasonable enquiries, record findings, and escalate to Companies House if verification fails.
“Reasonable enquiries” involve checking the share register, contacting significant shareholders, reviewing shareholder agreements, and using electronic ID checks. If a person refuses to provide evidence, directors must record the refusal, classify the entry as “information not confirmed,” and issue a “section 790” notice where applicable.

If reasonable enquiries still fail, directors must register the PSC as “relevant legal entity with unavailable information” and update Companies House with the position. Persistent non-compliance can trigger investigations and penalties.

How do transparency rules affect director decision-making?

Directors must avoid conflicts, disclose relevant interests at board meetings, and ensure company records reflect those disclosures.
Directors have a statutory duty to declare any personal interest in transactions or arrangements. The board must record the declaration and may require the director to withdraw from related decisions. Directors must also ensure that the company’s PSC and register of members remain accurate after any board action that affects control or ownership.

Acting without proper disclosure exposes directors to breach of duty claims and regulatory sanctions. Effective corporate governance requires documented processes for recording conflicts and updating statutory registers.

What penalties apply for non-compliance?

Companies and directors face fines, criminal sanctions, and reputational damage for failing to maintain accurate PSC and statutory registers.
Civil penalties apply for failure to deliver documents to Companies House or to keep accurate statutory registers. Officers who knowingly provide false information face criminal charges. Companies can receive daily fines until the register is corrected. Persistent breaches increase the likelihood of Companies House investigations and possible director disqualification proceedings.

Companies must also consider commercial consequences, such as delayed funding, failed audits, or problems in M&A due diligence when PSC records are inaccurate.

How can directors manage PSC compliance efficiently?

Directors should implement verification workflows, schedule quarterly register reviews, and retain verification records for five years.
Adopt a standardised intake form for PSC data and use electronic ID verification for speed and auditability. Schedule quarterly checks of the PSC register against the shareholder ledger and Companies House filings. Keep a digital audit trail of all verification steps and board declarations.

Use role assignments: one officer to manage the PSC register, one to handle verification, and one to file updates at Companies House. This divides responsibility and reduces human error.

Explore our PSC Register guides,

PSC verification UK: 6 requirements that many companies misunderstand 

Verification delays UK: 6 common mistakes businesses make 

How does My Company Registration support PSC compliance?

My Company Registration provides PSC Register services that verify, update, and file PSC information to maintain statutory compliance.
The service validates identities using accepted UK compliance frameworks, updates the internal register, and submits required filings to Companies House. My Company Registration also stores verification records for regulatory review and offers structured workflows that match board duties and statutory deadlines.

Directors gain a documented, audit-ready process that reduces filing errors and missed deadlines.
Directors must actively manage transparency duties: identify PSCs, verify identities, update the PSC register, and file timely changes at Companies House. Accurate records reduce legal risk, support due diligence, and protect corporate governance. My Company Registration offers professional PSC Register support to maintain compliance and create an audit trail for directors and auditors.

Frequently Asked Questions

What is a PSC Register for a UK company?

The PSC Register records people or entities with significant control over a UK company. It lists ownership and control details so the company can meet statutory transparency rules and keep filings accurate.

Who counts as a Person with Significant Control?

A Person with Significant Control usually holds more than 25% of shares or voting rights, can appoint or remove most directors, or exercises significant influence over the company. My Company Registration uses the PSC Register process to record this information correctly.

What information goes on a PSC Register?

A PSC Register usually includes the PSC’s name, service address, month and year of birth, nationality, country of residence, and the nature of control. It also records the date the person became registrable and any changes to their status.

When must a PSC Register be updated?

A PSC Register must be updated when control changes, a new PSC is identified, or existing details change. UK companies must keep the register current and make filings consistent with Companies House records.

Why is PSC compliance important for UK companies?

PSC compliance helps UK companies meet transparency rules, avoid penalties, and maintain accurate ownership records. My Company Registration supports the PSC Register process so directors can keep information organised and compliant.