What is a PSC for a CIC?

A Person with Significant Control — someone who holds more than 25% of voting rights, can appoint or remove the majority of directors, or has significant influence or control over the company.

Are CIC directors automatically PSCs?

No. Directors are only PSCs if they're also members holding more than 25% of voting rights, or meet another control condition. Being a director alone is not enough.

How many members do I need so nobody is a PSC?

With 4 equal members and no other special control rights, there may be no individual PSC on voting percentages alone, because each holds exactly 25% which is not more than 25%. But you still need to check the other PSC conditions.

What happens if I don't keep PSC information up to date?

Non-compliance with PSC requirements can be a criminal offence, with penalties including fines and up to 2 years imprisonment for officers in default.

How do I file PSC details with Companies House?

Use form PSC01 for individuals or PSC02 for corporate entities, within 14 days of identifying a new PSC. Confirm annually via your CS01 confirmation statement.

Persons with Significant Control (PSC) for CICs

Q: Do PSCs need identity verification?

Yes, identity verification became a legal requirement from 18 November 2025, with a 12-month transition period. The exact timing depends on whether you are a new or existing PSC, and whether you are also a director.

Last updated: April 2026

Written by Ben Ahern, Founder of CIC Tools & Co-founder of Homeless Aid UK CIC

Quick Answer

Every CIC must identify any person with significant control and keep its PSC information at Companies House accurate and up to date. The key threshold is more than 25% of voting rights. In many small CICs, directors who are also members will be PSCs. With 4 equal members and no other special control rights, there may be no individual PSC — because each person holds exactly 25%, which is not more than 25%.

What Is a PSC?

A Person with Significant Control is someone who has real power over the company. It's not the same as being a director — it's about ownership and voting power.

Companies House requires every UK company, including CICs, to identify and report who actually controls them. This was introduced to prevent fraud and money laundering — but it applies to every CIC regardless of size.

Key distinction:

Directors manage the company day-to-day. PSCs control the company through voting rights or other powers. They're often the same people in small CICs, but they don't have to be.

The 5 PSC Conditions

A person is a PSC if they meet any one of these conditions:

The 5 PSC Conditions

A person is a PSC if they meet ANY of these

Holds more than 25% of shares

CLS only

Only applies to CICs limited by shares. Most CICs are limited by guarantee, so this won't apply to you.

Holds more than 25% of voting rights

Most CICs

This is the main one for most CICs. Each member typically gets one vote — so with 3 members, each holds 33.3%.

Can appoint or remove majority of the board

Complex structures

If someone outside the board has this power (e.g. a parent charity), they're a PSC even if they're not a member.

Has significant influence or control

Rare

A broad catch-all. Rare in practice for small CICs, but worth knowing about.

Controls a trust or firm that meets any condition above

Complex structures

For complex corporate structures where control is held through another entity.

Important: the threshold is "more than 25%"

Not "25% or more". This is a crucial distinction. Someone holding exactly 25% of voting rights is not a PSC. Someone holding 25.1% is. This matters when you have exactly 4 equal members (25% each = no PSC).

Who Is a PSC in Your CIC?

Most CICs are limited by guarantee — no shares, just members with voting rights. Here's how it works in practice:

Who Is a PSC in Your CIC?

Sole director, sole member

1 PSC (you)

You hold 100% of voting rights.

2 directors who are both members

2 PSCs (both)

Each holds 50% — both well over the 25% threshold.

3 directors who are all members

3 PSCs (all)

Each holds 33.3% — all over the 25% threshold.

4 equal members, no special rights

Likely no individual PSC

Each holds exactly 25% on voting rights. But check the other conditions too — e.g. board appointment rights.

5+ equal members, no special rights

Likely no individual PSC

Each holds 20% or less on voting rights. Still check all 5 conditions.

With 4 or more equal members and no other special control rights, there may be no individual PSC on voting percentages alone. Always check all 5 conditions.

Designing Your CIC for Shared Control

Governance good practice, not a legal requirement

Shared control is not required by law, but it's widely considered good governance for community organisations. The legal test is always the actual PSC conditions, not the number of members.

We recommend shared control as a sensible default for CICs. The whole point of a Community Interest Company is community benefit, and spreading control supports that. Here's why many CIC founders structure it this way:

If one person controls everything, funders may question whether the CIC is genuinely community-led.
A 4+ equal member structure can mean no individual PSC on voting percentages, which signals shared governance (though you still need to check all 5 conditions).
It can simplify your PSC filing if there are genuinely no PSCs to report.
You can have more members than directors. Members vote on major decisions; directors run the day-to-day.

Starting solo? That's fine — you'll be a PSC and need to file PSC01. But plan to bring in other members as you grow. It's not just about compliance — it genuinely makes your CIC stronger.

Do You Still Need a Physical PSC Register?

No, not any more. From 18 November 2025, companies no longer have to keep their own local register of PSCs. Companies House now holds the PSC register centrally. You still need to identify your PSCs and make sure the Companies House record is accurate and kept up to date.

What information is recorded for a PSC?

PSC filings and records typically include:

Full name
Month and year of birth
Nationality and country of residence
Service address (residential addresses are protected from public display)
Date they became a PSC
Nature of their control (which of the 5 conditions they meet)

How to File with Companies House

When you first register your CIC

PSC details are included in the incorporation application. No separate form needed.

When a new PSC is identified

File form PSC01 (individual) or PSC02 (corporate entity) within 14 days.

When a PSC ceases

File form PSC04 within 14 days.

Annually

Confirm PSC details are correct in your confirmation statement (CS01). See our annual requirements guide.

Identity verification (from November 2025)

Identity verification became a legal requirement for PSCs from 18 November 2025, with a 12-month transition period. The exact timing depends on your situation:

• New PSCs added after 18 November 2025 can provide their personal code when first added or within 14 days.
• Existing PSCs have specific due dates depending on whether they are also directors and when they were added to the register.

Penalties

Worth taking seriously

Failing to comply with PSC requirements can be a criminal offence. The official guidance says non-compliance can lead to:

•Fines (potentially unlimited)
•Imprisonment of up to 2 years in serious cases
•Personal liability for directors and officers in default

For more complex situations, it's sensible to take professional advice rather than relying solely on an online guide.

When to Review PSC Status

Review and update your PSC information at Companies House whenever:

A director joins or leaves (if they're also a member)
A member joins or leaves
Voting rights change (e.g. articles amended)
Someone gains or loses the ability to appoint or remove directors
Any arrangement gives someone significant influence or control

Common Mistakes

Assuming directors are automatically PSCs

They're not. PSC status depends on control rights, not job title.

Thinking 25% makes someone a PSC

The threshold is MORE than 25%. Exactly 25% does not qualify.

Stopping at voting percentages

Even if no one has more than 25% of the votes, someone may still be a PSC under the board-appointment or significant-influence conditions.

Not telling Companies House about changes within 14 days

Set a reminder whenever directors or members change. Late filing can be a criminal offence.

Using old advice about a local PSC register

That changed on 18 November 2025. Companies House now holds the register centrally.

Oversimplifying identity verification deadlines

There is a 12-month transition period and the due date depends on the person's situation.

About the author

Ben Ahern is the founder of CIC Tools and co-founder of Homeless Aid UK CIC. As a CIC director and PSC himself, Ben has navigated the PSC requirements first-hand and built CIC Tools to help other founders manage their compliance.