A Practising Certificate (PC) is required when a member engages in practice. Practice is the provision of services including accounting and related services for which the relevant skills have been acquired by a member by reason of his or her training and qualification, to persons other than his or her employer.
A member engages in practice when he or she provides, or holds him or herself out to provide, such services to the public either personally or through a firm.
Examples of some of the more common reasons for requiring a Practising Certificate include:
- Becoming a principal in an accountancy firm;
- Independently offering accountancy or related services to the public;
- Being an insolvency permit licence holder; or
- An employee responsible individual under the Audit Regulations.
Principal is defined as an individual in sole practice (where the firm is a sole practice), a person who is a partner (including both salaried and equity partners) (where the firm is a partnership), a member of a limited liability partnership (where the firm is an LLP), a director (where the firm is a company) or an individual who is held out as being a company director, partner or member. For more information on whether a practising certificate (PC) is required, please see the guide to when a Practising Certificate is needed.
Practising Certificates are valid for the calendar year or the balance of the calendar year for which they are issued and must be applied for annually after the initial grant.
The Practising Certificate does not of itself convey the right to practice in the reserved areas of insolvency or audit.
Once a member has obtained a practising certificate, they must comply with the Public Practice Regulations.
Public Practice Regulations