S.C. Code Ann. § 40-2-40 – Grant or renewal of registration to practice as firm; qualifications for registration; changes in identities of partners or officers

(A) The board shall grant or renew registration to practice as a firm to entities that make application and demonstrate the required qualifications. A firm must hold a registration issued pursuant to this section in order to engage in the practice of accounting or to use the title "Certified Public Accountant" or "Accounting Firm".
(B) Qualifications for registration as a certified public accountant firm are as follows:
1. (1) A super majority sixty-six and two thirds percent of the ownership of the firm in terms of financial interests and voting rights must belong to certified public accountants currently licensed in some state. The noncertified public accountant owner must be actively engaged as a firm member in providing services to the firm's clients as his or her principal occupation. Ownership by investors or commercial enterprises is prohibited.
2. (2) Partners, officers, shareholders, members, or managers whose principal place of business is in this State, and who perform professional services in this State must hold a valid license issued pursuant to this section.
3. (3) There must be a designated resident manager in charge of each office in this State who must be a certified public accountant licensed in this State.
4. (4) Noncertified public accountant owners must not assume ultimate responsibility for any financial statement, attest, or compilation engagement.
5. (5) Noncertified public accountant owners shall abide by the code of professional ethics adopted pursuant to this chapter.
6. (6) Owners shall at all times maintain ownership equity in their own right and must be the beneficial owners of the equity capital ascribed to them. Provision must be made for the ownership to be transferred to the firm or to other qualified owners if the noncertified public accountant ceases to be actively engaged in the firm.
(C) Registration must be initially issued and renewed annually. Applications for registration must be made in such form, and in the case of applications for renewal, between such dates as the board by regulation may specify, and the board shall grant or deny any such application after filing in proper form.
(D) An applicant for initial issuance or renewal of a registration to practice pursuant to this chapter shall register each office of the firm within this State with the board and shall demonstrate that all attest and compilation services rendered in this State are under the charge of a person holding a valid license issued pursuant to this section or the corresponding provision of prior law or of some other state.
(E) The board shall charge a fee for each application for initial issuance or renewal of a registration issued pursuant to this section.
(F) An applicant for initial issuance or renewal of a registration to practice pursuant to this chapter shall list on the application all states in which the firm has applied for or holds registration and shall list any past denial, revocation, or suspension of a registration by any other state.
(G) Each holder of or applicant for a registration issued pursuant to this section shall notify the board in writing, within thirty days after its occurrence, of any change in the identities of partners, officers, shareholders, members, or managers whose principal place of business is in this State, any change in the number or location of offices within this State, any change in the identity of the licensee in charge of these offices, and any issuance, denial, revocation, or suspension of a registration by any other state.
(H) A firm that falls out of compliance with the provisions of 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 for a firm to take this corrective action. Failure to bring the firm back into compliance within a reasonable period as defined by the board shall result in the suspension or revocation of the firm permit.
SECTION 40-2-50 to 40-2-60. Omitted by 2004 Act No. 289, Section 1, eff July 22, 2004.
SECTION 40-2-50 to 40-2-60. Omitted by 2004 Act No. 289, Section 1, eff July 22, 2004.
SECTION 40-2-50 to 40-2-60. Omitted by 2004 Act No. 289, Section 1, eff July 22, 2004.