Under the UK Companies Act, there are no specific provisions regarding the date for holding an annual general meeting . However, listed companies are required to prepare and file financial statements within 6 months from the accounting date, while non-listed companies have a deadline of 9 months from the accounting date (Sec 442, Companies Act). Therefore, it is common for companies to have their general meetings conducted before these deadlines.

Additionally, although exemption provisions exist, the preparation of consolidated financial statements is generally mandatory (Sec 399, Companies Act).
This is why Japanese subsidiaries under a parent company in the UK may get audited due to this background.

Furthermore, under the Companies Act, even non-listed companies are subject to audit requirements (Sec 475, Companies Act). However, if a company meets at least two of the following conditions, it will be categorized as a “Small Company” and will be exempt from the audit obligation (Sec 382, Companies Act).

a) The company’s turnover is less than 10.2 million pounds (approximately 1.7 billion yen).
b) The company’s total assets are less than 5.1 million pounds (approximately 900 million yen).
c) The number of employees is 50 or fewer.

Based on the above provisions, if the turnover and asset amounts of a UK parent company are in the range of several hundred million yen, it would be subject to an audit and required to prepare consolidated financial statements. Consequently, its Japanese subsidiary might also be subject to audit requirements.

At our firm, we conduct audits for such Japanese subsidiaries of UK-based companies in collaboration with the auditors of the parent company. We also provide consultations and estimates, so please feel free to contact us.

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Our Advantageous Points

・Certified public accountants with experience in auditing a Japanese subsidiary under instruction of Big4 firms.
・We offer flexible advice on IFRS accounting.
・We also respond to requests for reporting and explanations in English.
・The level of service provided is comparable to that offered by major audit firms.
・Due to a small and efficient team, the workload is minimized, resulting in reasonable audit fees.

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