Companies Act

714. Conditions for exemption from audit for dormant companies

Edition: 2024-12-27 · In force

(1)A company is exempt from the requirements of this Act relating to the audit of financial statements in respect of a financial year if—

(a)it has been dormant since its formation; or

(b)it has been dormant since the end of the previous financial year and the conditions in subsection (2) are satisfied.

(2)The conditions are that the company—

(a)with regard to its individual financial statement for the financial year—

(i)is entitled to prepare financial statements in accordance with the small companies regime; or

(ii)would be so entitled but for having been a public company or a member of an ineligible group; and

(b)is not required to prepare group financial statements for that year.

(3)This section has effect subject to sections 709(2) and (3), 710 and 715.