Definition of a partnership for accounting purposes

Clifford McDowell

Definition of a partnership for accounting purposes

The Partnerships (Accounts) Regulations of 2008 require the members of any qualifying partnership to prepare accounts. If a member of the partnership is also a limited company, they are then required to attach these accounts to their own for filing with Companies House.

Definition of a Partnership

According to the Partnerships (Accounts) Regulations of 2008, a qualifying partnership is defined as any partnership formed under the law in any part of the United Kingdom, if each partner or member meets specific criteria. If the partnership formed and in a financial year before 1 October 2013, the Partnerships (Accounts) Regulations of 2008 qualifies on the following criteria:

  • The organisation is a limited company
  • The organisation is an unlimited company or part of a Scottish partnership whose members are a limited company

If a partnership was formed in a financial year that began on or after 1 October 2013, the qualifying criteria includes the following:

  • The organisation is a limited company
  • The organisation is an unlimited company whose members include a limited company
  • The organisation is a Scottish limited partnership that classifies every general partner as a limited company
  • The organisation is any other Scottish partnership that classifies every member as a limited company

Accounts the Partnership is Responsible for Preparing

Every member of a qualifying partnership has to prepare audited accounts for the limited partnership or organisation as if it was a limited company. Each account the partners prepare has to fall in line with the requirements and regulations that the Companies Act of 2006 set.

The limited partnership has to pay special attention to Regulation 7 of the Partnerships (Accounts) Regulations of 2008. Regulation 7 states that the members of the qualifying partnership are not required to prepare partnership accounts if the partnership is dealt with on a consolidated basis when the group accounts are prepared by:

  • A member of the qualifying partnership. The European Economic Area (EEA) established the member under the law of member state.
  • A parent undertaking of such a member

Should this be the case of the partnership in question, all of the groups’ accounts are required to get prepared and audited in accordance with the law of the EEA State. They also must fall in line with the Seventh Company Law Directive or under the International Accounting Standards. Additionally, the law requires that the group of accounts get a note that discloses the advantage that the group has received from this exemption.

What a Partnership Must Deliver and When They Publish Accounts

If the organisation is a limited company and they are a member of the qualifying partnership, they’re required to attach the partnership accounts to the next set of accounts they will deliver to Companies House. Additionally, they’re required to supply the following when requested.

  • The name of each member who was responsible for delivering copies of the partnership accounts to Companies House
  • The name of each member that is incorporated in another EEA State who is required to publish the partnership accounts in their specific state.

If none of the members of the qualifying partnership classifies as a limited company, or if an undertaking is comparable to a limited company that is incorporated into another EEA State, the partnership is required to make their accounts available for an inspection by any person. They cannot charge for this inspection, and it must be during business hours. Additionally, it must be carried out at the principal place where the partnership conducts business. If the original document is not in English, a certified translation must be made available to the inspecting party.

If the principal place of business for the partnership relocates outside of the UK and their accounting years began on or after the date of 1 October 2013, the partnership is required to make their accounts available for any inspections in the same way as outlined above. This will take place at:

  • The head office or principal place of business for any member of the partnership that has a principal place of business or head office in the UK
  • A place where no member of the partnership has a principal place of business or head office in the UK. This can be at an address in the UK that the qualifying partnership members nominate.

Also, each member of the partnership is required to supply any person a copy of the most recent accounts of the partnership at their request. This includes a certified translation if the original accounts are not in English. They may charge a fee to cover the administrative cost associated with supplying the copies, but nothing in excess of this.

Stay informed


Membership Level

You have selected the Free Level membership level.

The price for membership is £0.00 now.

Create your FREE account for access to this and ongoing data updates.

Account information Already have an account? Log in here


More Information

Terms and Conditions

1. Acceptance the Use Of Terms and Conditions

Your access to and use of (the Website) , the property of Doorda Ltd (“Doorda”), is subject exclusively to these Terms and Conditions. You will not use the Website for any purpose that is unlawful or prohibited by these Terms and Conditions. By using the Website you are fully accepting these including any disclaimers stated therein . If you do not accept these Terms and Conditions you must immediately stop using the Website.

2. Credit card details

Doorda will never ask for Credit Card details and requests that you do not enter it on any of the forms on the Website

3. Advice

The contents of the Website do not constitute advice and should not be relied upon in making or refraining from making, any decision.

4. Non-Commercial Use

All content on the Website is for non-commercial use only and is issued under the Creative Commons Attribution-Non Commercial 4.0 International Licence .

5. Change of Use

Doorda reserves the right to:

(1) Change or remove (temporarily or permanently) the Website or any part of it without notice and you confirm that Doorda shall not be liable to you for any such change or removal
(2) Change these Terms and Conditions at any time, and your continued use of the Website following any changes shall be deemed to be your acceptance of such change.
(3) Discontinue access by any user at any time , such action being entirely at Doorda’s discretion

6. Links to Third Party Websites

The Website may include links to third party websites that are controlled and maintained by others. Any link to other websites is not an endorsement of such websites and you acknowledge and agree that we are not responsible for the content or availability of any such sites.

7. Intellectual Property

7.1 All copyright, trademarks and all other intellectual property rights in the Website and its content (including without limitation the Website design, text, graphics and all software and source codes connected with the Website) are owned by or licensed to Doorda or otherwise used by Doorda as permitted by law.

7.2 In accessing the Website you agree that you will access the content solely for your personal, non-commercial use. None of the content may be downloaded, copied, reproduced, transmitted, stored, sold or distributed without the prior written consent of the copyright holder. This excludes the downloading, copying and/or printing of pages of the Website for personal, non-commercial home use only.

8. Disclaimers and Limitation of Liability

8.1 The Website is provided on an AS IS and AS AVAILABLE basis without any representation or endorsement made and without warranty of any kind whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.

8.2 To the extent permitted by law, Doorda will not be liable for any indirect or consequential loss or damage whatever (including without limitation loss of business, opportunity, data, profits) arising out of or in connection with the use of the Website.

8.3 Doorda makes no warranty that the functionality of the Website will be uninterrupted or error free, that defects will be corrected or that the Website or the server that makes it available are free of viruses or anything else which may be harmful or destructive.

8.4 Nothing in these Terms and Conditions shall be construed so as to exclude or limit the liability of Doorda for death or personal injury as a result of the negligence of Doorda or that of its employees or agents.

9. Indemnity

You agree to indemnify and hold Doorda and its employees and agents harmless from and against all liabilities, legal fees, damages, losses, costs and other expenses in relation to any claims or actions brought against Doorda arising out of any breach by you of these Terms and Conditions or other liabilities arising out of your use of this Website.

10. Severance

If any of these Terms and Conditions should be determined to be invalid, illegal or unenforceable for any reason by any court of competent jurisdiction then such Term or Condition shall be severed and the remaining Terms and Conditions shall survive and remain in full force and effect and continue to be binding and enforceable.

11. Governing Law

These Terms and Conditions shall be governed by and construed in accordance with the laws of England and you hereby submit to the exclusive jurisdiction of the English courts.

Click here to read full terms of use. Your information will be used to log you in to the website and subscribe you to our newsletter when selected. We will only send you relevant information and you can unsubscribe at any time. View our Privacy Policy

Join our mailing list.