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Company Formation Home Page >> Establishing Limited Liability Partnership Guide >> LLP Audit ExemptionUNITED KINGDOM LIMITED LIABILITY PARTNERSHIP AUDIT EXEMPTION LLPs with a turnover of no more than £350,000 and a balance sheet total of no more than £1.4 million may dispense with an audit altogether. A company which is a member of a group may also claim exemption if the group turnover and balance sheet total do not exceed £350,000 and £1.4 million (£1.68 million gross) respectively. Slightly different rules apply to companies which are charities. The basis for claiming exemption will need to be stated on the balance sheet and signed by a director (or LLP member).
Exemption from audit cannot be claimed by: a public company unless the company is dormant; a company which is a subsidiary of an overseas undertaking. A bank, insurance company, enrolled insurance broker or authorised person under the Financial Services Act. A special register company under the Trade Union and Labour Relations (Consolidation) Act 1992 or an employers association. Companies where an audit is required by members holding at least 10% of issued share capital.
A dormant company may pass a resolution not to appoint auditors, but not if it is a banking or insurance company or an authorised person under the Financial Services Act. A voluntary standard format for accounts may be used by companies which have been dormant since incorporation.
APPROVAL OF ACCOUNTS AND DIRECTORS' REPORT The accounts must be approved by the board of directors, one of whom must sign the balance sheet. The directors' report must also be approved by the board and signed by a director or the secretary. In both cases, the name of the person signing should be stated and copy with an original signature should be delivered to Companies House.
CIRCULATION OF ACCOUNTS AND REPORTS The accounts must normally be considered by a general meeting of the company, usually the annual general meeting. A copy of the accounts and reports must be sent to every member or debenture holder, and anyone else entitled to attend, at least 21 days before the meeting takes place. It is the duty of the directors to call the meeting at the appropriate time. In the case of a private company, the meeting to consider the accounts will normally be not later than 10 months after the accounting reference date. If the company's first accounts cover a period of more than 12 months, the time allowed will be restricted to 22 months from the date of incorporation.
For a public company the time allowed is 7 months after the accounting reference date or, in the case of first accounts covering more than 12 months, 19 months from incorporation, subject to there being a minimum period of 3 months following the period covered by the accounts.
A company may be able to claim extra time if it has overseas interests (in which case form 244 should be sent to Companies House) or if the Secretary of State has agreed that there are special reasons for doing so. In either case, the extension must be arranged before the end of the period originally allowed for delivery of the accounts.
While a company may pass an elective resolution to dispense with the laying of accounts and reports before a general meeting, the accounts and reports would still need to be circulated.
DELIVERY OF ACCOUNTS TO COMPANIES HOUSE The time allowed for delivering accounts to Companies House is the same as is allowed for laying them before a general meeting. When accounts are delivered late, there is an automatic civil penalty in the range of £100.00 to £1,000.00 for a private company and £500.00 to £5,000.00 for a public company.
Also, the directors are personally responsible for the delivery of accounts to Companies House. They are liable to prosecution in the Magistrates' Court (the Sheriff Court in Scotland) if the accounts are delivered late or not at all. A conviction would mean a criminal record and usually a fine of up to £5,000.00. Persistent failure to delivery accounts or other documents on time could mean a daily default fine of up to £500.00. It could also result in the disqualification of those concerned as company directors.
 
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U.K. LLP
LLP Audit Exemption
£ 125.00
Nominee LLP Designated Member Service for Public Records for one year:
It is a perfectly legal device which preserves the privacy of an individual. It is designed to help a person who would rather not disclose their interest or association with a given corporate body (LLP).
