1. (a) A firm engaged in this state in the practice of public accounting may register with the board as a firm of certified public accountants provided the firm meets all of the following requirements:

   1. (1) At least 51 percent of the ownership of the firm, in terms of financial interests and voting rights of all partners, officers, shareholders, members, or managers, belongs to holders of a certificate who are licensed in some state, and such partners, officers, shareholders, members, or managers, whose principal place of business is in this state, and who perform professional services in this state hold a valid certificate issued under Section 34-1-4. Although firms may include nonlicensee owners, the firm and its ownership shall comply with rules adopted by the board.
   2. (2) Each certified public accountant owner regularly engaged within this state in the practice of public accounting as a member of the firm shall be a certified public accountant of this state in good standing except as provided in subdivision (4) or when practicing pursuant to Section 34-1-7.
   3. (3) Each resident manager in charge of an office of a firm in this state whose main office is outside this state shall be a certified public accountant of this state in good standing except as provided in subdivision (4).
   4. (4) Each certified public accountant from another jurisdiction transferring into Alabama shall obtain an Alabama reciprocal certificate not more than 24 months from the date of transfer.

   5. (5) The firm does all of the following with regard to any nonlicensee owners of the firm:

      1. a. Designates a licensee of this state who is responsible for the proper registration of the firm and identifies that individual to the board.
      2. b. Ensures all nonlicensee owners are active individual participants in the firm.
      3. c. Ensures a nonlicensee is not an owner if he or she has previously held a license.
      4. d. Ensures that all nonlicensee owners whose principal place of business is in this state register annually with the board, pay an annual registration fee in an amount determined by the board, and report the completion of any annual continuing education requirements that the board may impose by rule on nonlicensee owners.
      5. e. Complies with all other requirements as the board may impose by rule.
   6. (6) Firms that fall out of compliance with this section due to changes in firm ownership or personnel, after receiving or renewing a permit, shall take corrective action to bring the firm back into compliance as quickly as possible. The board may grant a reasonable period of time to take such corrective action. Failure to bring the firm back into compliance within a reasonable period of time as defined by the board shall result in the suspension or revocation of the firm permit.
2. (b) Application for registration shall be made upon the affidavit of an owner of the firm who is a certified public accountant of this state in good standing. The board shall in each case determine whether the firm is eligible for registration. A firm that is registered and that holds a permit issued under Section 34-1-11 may use the words “certified public accountants” or the abbreviation “CPAs” in connection with the name of the firm. A registered firm shall notify the board not more than one month after the admission or withdrawal of an owner.

(Acts 1973, No. 997, p. 1510, §5; Acts 1995, No. 95-516, p. 1038, §1; Act 2003-393, p. 1114, §1; Act 2009-620, p. 1794, §1; Act 2026-16, §2.)