Alternative Business Structure Authorisation

MAR Legal advises investors, entrepreneurs and non-lawyer professionals on alternative business structure authorisation. Where a business or individual wants to own, co-own or manage a law firm, SRA authorisation as a licensed body is required. Our solicitors guide clients through the ABS application process, from initial eligibility assessment through to submission and approval.

Book a consultation
shareholder buyout

How the Alternative Business Structure Authorisation Process Works

An alternative business structure is a law firm where non-lawyers hold an ownership stake or management role alongside qualified solicitors. To operate as an ABS, the firm must obtain licensed body authorisation from the SRA. The application requires the firm to demonstrate fit and proper ownership, robust governance, compliance systems and the financial stability to support a regulated practice.

The SRA’s assessment covers proposed owners, managers and role holders individually, as well as the firm’s overall structure and controls. MAR Legal works with clients across Manchester and throughout England and Wales, advising on how to structure the application, prepare the supporting documentation and respond to SRA queries. The ABS authorisation process is more involved than standard firm authorisation, early preparation and clear documentation make a material difference to the timeline and outcome.

How Our ABS Authorisation Solicitors Help

Practical support at every stage of the alternative business structure authorisation process.

ABS Eligibility and Structure Advice

Before applying, it is important to understand whether an ABS is the right structure and what the SRA will assess. Our solicitors advise on the three firm types, recognised body, recognised sole practice and licensed body, and help identify the structure that fits the proposed ownership and management model.

Application Preparation and Submission

The SRA ABS application requires detailed information about proposed owners, managers, role holders, governance arrangements, compliance systems and financial position. Our solicitors help prepare and review all application materials before submission, reducing the risk of delay or rejection.

COLP and COFA Appointment

Every ABS must designate a Compliance Officer for Legal Practice and a Compliance Officer for Finance and Administration. Our solicitors advise on the requirements for each role, help identify suitable candidates and support role holders in understanding their obligations from the outset.

Fit and Proper Person Assessment Support

The SRA assesses every proposed owner, manager and compliance officer for suitability. Our solicitors advise on what the assessment involves, how to present individual histories clearly, and how to address any aspects of a proposed role holder's background that may require explanation.

What this means for your Firm

  • The application is structured and presented in the way the SRA expects to see it
  • Role holder suitability issues are identified and addressed before submission
  • Compliance systems and governance documentation are in place from day one
  • SRA queries and requests for further information are handled clearly and promptly
  • The firm launches with a regulatory foundation that supports long-term operation

When to Consider Outsourced COLP Support

  • A non-lawyer investor or business wants to acquire a stake in a law firm
  • An existing law firm wants to restructure to allow non-lawyer ownership or management
  • A professional services business wants to add regulated legal services to its offering
  • A new business wants to set up as an ABS from the outset rather than a traditional firm
  • An ABS application has been started but the firm needs support responding to SRA queries

Meet the Founder

Marium brings 22 years of experience advising law firms and regulated practices on SRA compliance, governance and authorisation across the UK. A Solicitor regulated by the SRA (ID: 277854) & MCIArb, she founded MAR Legal to give businesses and investors direct access to senior regulatory expertise without the overhead of a traditional firm.

Marium Razzaq - Solicitors in Manchester
Marium Razzaq
Solicitor & Director Mar Legal
MCIArb

Contact Us for Support with ABS Authorisation

Trusted by Law Firms across the UK for support with alternative business authorisation.

Get in touch today for a consultation.

Contact Us info@marlegal.co.uk


Request a Call Back – Fill out the form below, and one of our team will contact you promptly.

Why Choose MAR Legal for ABS Authorisation

Solicitor Led Advice

All work is carried out by qualified solicitors with direct experience of SRA firm authorisation.

Clear Timescales

Delivery dates agreed at the outset and met without the need to chase.

Fixed Fee

Scope and fee agreed upfront. No hourly billing, no unexpected costs, clear milestones throughout the application process.

Commercial Focus

Based in Manchester, our solicitors work with investors, entrepreneurs and law firms across the UK seeking ABS authorisation.

Why Choose MAR Legal for ABS Authorisation

01

Initial assessment

We review the proposed ownership structure, management arrangements and intended services to confirm whether ABS authorisation is the right route and what the SRA will expect to see.

02

Application preparation

We help prepare the full application, including role holder schedules, governance documentation, compliance policies and financial information, reviewing everything before submission.

03

Submission and SRA liaison

We support with the application and manage communication with the SRA throughout the review period, responding to queries and requests for further information promptly.

04

Post-authorisation support

Once authorised, we assist with the compliance setup the firm needs to operate properly from day one, including COLP and COFA support and ongoing regulatory advice.

Alternative business structure authorisation sits within our broader law firm regulation and SRA compliance practice. Firms setting up from scratch as a recognised body rather than an ABS should see our New Firm Authorisation page. Once authorised, our COLP and COFA Support service helps the firm's compliance officers manage their obligations on an ongoing basis.

What Our Clients Say

Alternative Business Structure Authorisation: Common Questions

An alternative business structure is a law firm that is authorised by the SRA to have non-lawyers in its ownership or management. This allows businesses, investors and professionals from other sectors to hold a stake in or run a law firm alongside qualified solicitors. The ABS model was introduced under the Legal Services Act 2007 to open up the legal sector to external investment and multidisciplinary practice.

Any business or individual that wants to own or manage a regulated legal practice where at least one owner or manager is a non-lawyer needs to apply for licensed body authorisation. This includes external investors, private equity firms, accountancy practices, technology businesses and other professional services firms. The SRA assesses all proposed owners and managers for suitability, regardless of whether they are lawyers or non-lawyers.

The SRA does not publish a fixed timeline for ABS applications. In practice, straightforward applications can take four to six months, while more complex structures involving multiple owners, overseas entities or suitability questions can take significantly longer. Early preparation, a complete application and prompt responses to SRA queries are the most effective ways to reduce the timeline.

The SRA assesses the suitability of every proposed owner, manager and compliance officer individually, looking at their financial position, regulatory history, criminal record and professional background. It also assesses the firm's proposed governance structure, compliance systems, client protection arrangements, AML controls, professional indemnity insurance and financial stability. Any gaps or unexplained aspects of the application will generate queries that slow the process.

Yes. An ABS can be majority or wholly owned by non-lawyers, provided all owners pass the SRA's fit and proper assessment and the firm has qualified lawyers in the appropriate management and compliance roles. The SRA does not restrict the proportion of non-lawyer ownership, but it does require that the firm maintains the standards that apply to all regulated legal practices regardless of who owns it.

A recognised body is a law firm where all owners and managers are lawyers regulated by approved regulators. A licensed body is a firm where at least one owner or manager is a non-lawyer. Both types of firms are regulated by the SRA and must meet the same conduct and compliance standards, but the licensed body application process is more detailed because of the additional scrutiny that applies to non-lawyer ownership.

Once authorised, the firm must comply with the same ongoing regulatory obligations as any other SRA-regulated practice. This includes designating and supporting a COLP and COFA, maintaining AML controls, complying with the Accounts Rules and the SRA Standards and Regulations, and notifying the SRA of any material changes to the firm's structure, ownership or management. MAR Legal can assist with the compliance setup and ongoing obligations after authorisation is granted.

MAR Legal provides advisory and documentation support for ABS authorisation applications. The firm does not conduct litigation, advocacy or any other reserved legal activity. Where a matter requires representation before the SRA or involves reserved activities, we work alongside appropriately regulated professionals.