Person with Significant Control vs Director

When setting up or managing a limited company in the UK, you will often come across two important roles: Person with Significant Control (PSC) and Director. While the same individual can hold both positions, they are not the same thing and carry different responsibilities under company law.

Understanding the difference between a director and a person with significant control is essential for maintaining accurate records and avoiding non-compliance with Companies House. Our limited company accountants work with businesses of all sizes to ensure that both roles are correctly identified, recorded and reported. We help you prepare and file director appointments, PSC updates, and confirmation statements, making sure all statutory obligations are met. Whether you are onboarding new investors or restructuring the board, we provide the expertise needed to keep your filings accurate and your governance clear.

In this article, we explain the key differences between a PSC and a director, what each role involves, and why it is important to understand the distinction for compliance with Companies House.

What Is a Person with Significant Control?

A Person with Significant Control (PSC) is someone who ultimately owns or controls a company. This is usually the person behind the scenes who holds significant influence over company decisions, even if they are not involved in the day-to-day operations.

A PSC is defined by one or more of the following:

• Holding more than 25 percent of the company’s shares

• Holding more than 25 percent of the company’s voting rights

• Having the right to appoint or remove most of the board of directors

• Having significant influence or control over the company or a trust that owns the company

PSC details must be recorded in the company’s internal register and reported to Companies House. These details are publicly visible and must be kept up to date.

Read more about persons with significant control.

What Is a Director?

A Director is a person appointed to run the company. Directors are legally responsible for managing the company’s affairs, meeting statutory duties, and ensuring the company operates within the law.

Directors are listed on the public register at Companies House and must comply with the Companies Act. Their responsibilities include:

• Filing confirmation statements and annual accounts

• Maintaining proper company records

• Acting in the best interests of the company

• Avoiding conflicts of interest

• Keeping Companies House informed of changes

A company must have at least one director, and their details must be kept accurate and up to date.

Can a Person Be Both a PSC and a Director?

Yes. In many small companies, especially those with a single owner, the same person is both the director and the PSC. For example, if you are the only shareholder and director of your company, you will usually be listed in both roles.

However, in larger companies or group structures, the roles may be separate. A shareholder with controlling interest may be a PSC without being a director, while some directors may be appointed to manage the company without holding any shares or control.

Key Differences Between a PSC and a Director

Person with Significant Control

• Legal Function: Ownership and control

• Public Disclosure: PSC register at Companies House

• Appointed by: Ownership or influence

• Can be the same person: Yes

• Responsible for: Influencing or controlling major decisions

Director

• Legal Function: Day-to-day management and decision-making

• Public Disclosure: Director register at Companies House

• Appointed by: Shareholders or existing directors

• Can be the same person: Yes

• Responsible for: Ensuring the company meets its legal duties

Understanding the difference helps ensure the right filings are made and that company records are kept accurate.

Why It Matters for Compliance

Both PSCs and directors must be reported to Companies House. Failure to maintain accurate records can result in penalties, rejection of company filings, or even the company being struck off the register.

It is essential to update Companies House promptly if a new director is appointed, a PSC changes, or someone stops holding significant control.

You might also be interested in what is a confirmation statement.

Final Thoughts

While directors and Persons with Significant Control often overlap in small businesses, they serve different purposes in company law. Directors manage the business, while PSCs influence or control ownership. Identifying and reporting each role correctly helps maintain transparency, avoid legal issues, and keep your company compliant with Companies House requirements.

If you are unsure about how to report changes or need help keeping your company records up to date, working with a qualified accountant or company secretary can provide peace of mind. For small businesses, especially those where one person owns and runs the company, it is common for the director and PSC to be the same person. Even so, both roles still need to be reported and maintained correctly. Our small company accountant service is designed to take care of these formalities with minimal disruption. We guide you through the requirements, manage your Companies House filings, and make sure your records are fully up to date so you can stay focused on growing your business. Whether you are setting up a new company or updating an existing one, we make compliance simple and stress-free.

Unsure what to file, when to file it or how to stay compliant? Our Companies House Help hub walks you through it all.