Find out what you should be aware of before setting up, or becoming, a subsidiary.
Co-operative and community benefit societies should be aware of several factors when deciding to set up, or become, a subsidiary.
Conditions for registration
You are registered to either:
- Be a co-operative society.
- Conduct your business for the benefit of your community For co-operatives, we provide further details from paragraph 4.17 of our guidance. For community benefit societies, the guidance is set out from paragraph 5.18.
Accounting and audit
Setting up or becoming a subsidiary affects the type of accounts you produce, and the need to have those accounts audited.
Societies with one or more subsidiaries must produce group accounts unless we grant a request to not do so. We set out further details from paragraph 7.10 of our guidance. You can apply for a group account exemption.
Societies who have a subsidiary must appoint a qualified auditor to audit the accounts and balance sheet. You cannot disapply this requirement. The same applies to societies who are subsidiaries. This may mean, for example, that a society who was eligible to disapply the audit requirement previously is no longer able to do so once they set up a subsidiary.
Read more about submitting accounts.