Change of Legal Status
Switching to a new company structure? You’ll need fresh FCA authorisation to keep trading.
What you need to know
FCA Authorisation can't be transferred
When a business changes its legal structure, for example, from a sole trader to a limited company, the existing FCA authorisation doesn’t carry over. Authorisation is tied to the original legal entity and can’t simply be updated.
New entity, new application
The FCA treats each legal entity as distinct, so you’ll need to submit a new application for authorisation. The original business can’t continue regulated activities under the old licence once the new entity is approved.
This isn't a simple admin update
Unlike a Variation of Permission (VOP), a Change of Legal Status involves a full authorisation process. That means more documentation, greater scrutiny, and a longer timescale, which can delay operations if mishandled.
Expert help minimises disruption
The transition between legal entities can be time-sensitive and complex. With the risk of regulatory breaches, operational delays, or gaps in permission, it’s essential to have expert support to keep things compliant and on track.
What the FCA requires
A new FCA application
You must submit a full authorisation application under the new legal entity. The FCA does not allow the transfer of permissions from one entity to another.
Approval before trading
Your new entity cannot carry out any regulated activities until the FCA has approved the new application. Operating without authorisation is a breach of regulations.
Ceasing activities under the old entity
Once the new authorisation is granted, you must stop all regulated activities under the previous legal entity. Continuing to trade under the old structure can result in enforcement action.
Careful timing and planning
Since there’s no overlap in authorisation, careful planning is essential to avoid downtime or compliance gaps during the transition.
Get in touch, it's free to chat...
Give us a call on 01792 926 040 or fill out the form and one of the team will be in touch.
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