Company Formation Specialists

What Exemption Is Available And For Which Companies?

There is total exemption from audit for certain small companies if they are eligible and wish to take advantage it.

To qualify for audit exemption, a company must

• qualify as small;
• have a turnover of not more than £6.5 million; and
• have a balance sheet total of not more than £3.26 million.

However, even if a small company meets these criteria, it must still have its accounts audited if a member or members holding at least 10% of the nominal value of issued share capital or holding 10% of any class of shares demands it; or - in the case of a company limited by guarantee - 10% of its members in number. The demand for the audit of the accounts should be in the form of a notice to the company, deposited at the registered office at least one month before the end of the financial year in question. The notice may not be given before the financial year to which it relates.

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