Authorisation – Annual Report 2023/24
2 February 2026
This page provides information in relation to our authorisation work. It covers a range of annual data related to our work, including data about: the types of firms we regulate, applications to set up firms and answering ethics-related queries.
We update this page annually and the latest data for the period November 2023 to October 2024 is included in the below. Please note, our business year is 1 November to 31 October. Depending on the context, we publish data covering 2023/24 as well as up to six years preceding this latest business year. Unless otherwise stated, the figures relate to 31 October for each year – the end of the reporting year.
Analysis and key findings relating to this data can be found in our Driving Confidence and Trust in Legal Services report.
There is also a glossary at the end of the page which has definitions of the terms we use.
Total number of firms we regulate
| Year | Total number of law firms |
|---|---|
| 2017/18 | 10,407 |
| 2018/19 | 10,341 |
| 2019/20 | 10,107 |
| 2020/21 | 9,860 |
| 2021/22 | 9,636 |
| 2022/23 | 9,328 |
| 2023/24 | 9,147 |
Breakdown of firm types
The glossary sets out details of the different types of firms listed below, as well as a definition of the term 'ABS' (alternative business structure).
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
|---|---|---|---|---|---|---|---|
| Incorporated company | 4,778 | 4,952 | 5,015 | 5,093 | 5,161 | 5,153 | 5,170 |
| Incorporated company with ABS licence (subset) | 559 | 629 | 687 | 773 | 850 | 905 | 954 |
| Sole practitioner* | 2,367 | 2,217 | 2,060 | 1,878 | 1,716 | 1,577 | 1,473 |
| Partnership | 1,673 | 1,584 | 1,470 | 1,352 | 1,226 | 1,105 | 1,025 |
| Partnership with ABS licence (subset) | 41 | 46 | 47 | 46 | 50 | 50 | 45 |
| LLP | 1,542 | 1,549 | 1,526 | 1,503 | 1,498 | 1,461 | 1,450 |
| LLP with ABS licence (subset) | 189 | 199 | 208 | 218 | 238 | 244 | 255 |
| Other | 37 | 39 | 36 | 34 | 34 | 32 | 29 |
| Other with ABS licence (subset) | 2 | 3 | 3 | 3 | 3 | 3 | 3 |
| Total number of firms | 10,407 | 10,341 | 10,107 | 9,860 | 9,636 | 9,328 | 9,147 |
| Total with ABS licence and percentage of total firms (subset) | 791 (8%) | 877 (8%) | 945 (9%) | 1,040 (11%) | 1,141 (12%) | 1,202 (13%) | 1,257 (14%) |
* Please note that, because of the nature of their business, sole practitioners cannot adopt ABS licences. A lawyer and a non-lawyer must be involved in the running of an ABS.
Please note, these figures relate to solicitors only and do not include registered European lawyers or registered foreign lawyers.
| Year | On the roll of solicitors | Total number of solicitors on the roll who also hold a practising certificate |
|---|---|---|
| 2017/18 | 192,121 | 146,625 |
| 2018/19 | 199,181 | 150,349 |
| 2019/20 | 205,688 | 153,082 |
| 2020/21 | 212,601 | 156,928 |
| 2021/22 | 219,424 | 160,676 |
| 2022/23 | 201,690* | 166,256 |
| 2023/24 | 206,787 | 171,697 |
* In April 2023, we reintroduced a keeping of the roll exercise. The last time we carried out this exercise was in 2014. This means that if a solicitor wants to stay on the roll of solicitors, they need to make an annual application and pay a small administration fee. This annual exercise makes sure the data we hold is up to date. The significant drop in the numbers of solicitors on the roll between 2021/22 and 2022/23 is likely related to the reintroduction of this arrangement.
Each year, we refuse a handful of applicants. The reasons are, generally, that the applicant has failed to disclose an important piece of information relating to their character or suitability, or they have failed to meet our requirements. The refusals we make each year are limited in number as some people withdraw their applications when they cannot meet our requirements. We do not report on the withdrawal numbers as we do not have this data to report.
| Year | Individuals admitted | Individuals refused |
|---|---|---|
| 2017/18 | 6,786 | 4 |
| 2018/19 | 7,003 | 3 |
| 2019/20 | 6,723 | 3 |
| 2020/21 | 7,171 | 8 |
| 2021/22 | 7,298 | 2 |
| 2022/23 | 8,819 | 0 |
| 2023/24 | 9,601 | 3 |
Applying to set up a firm is a rigorous process. We work with those seeking to set up a firm as we assess their applications to make sure they meet our requirements. If we have to inform applicants that they do not meet these requirements, or they decide it is not an appropriate time for them to set up a business, they withdraw from the process. We also refuse applications. We do this where:
- we are not satisfied as to the suitability of its management or owners to run and manage a business providing legal services
- we are not satisfied that the firm will comply with our requirements and regulations, or
- it would be against the public interest or incompatible with our regulations to grant the application.
We detail the numbers granted, withdrawn and refused below.
Applications to authorise new firms or change legal entity of existing firm
| Application type | Granted | Withdrawn | Refused | |
|---|---|---|---|---|
| 2021/22 | Application to authorise new firm | 407 | 31 | 1 |
| Application to change legal entity of existing firm | 107 | 3 | 1 | |
| 2022/23 | Application to authorise new firm | 321 | 37 | 2 |
| Application to change legal entity of existing firm | 80 | 2 | 0 | |
| 2023/24 | Application to authorise new firm | 356 | 20 | 0 |
| Application to change legal entity of existing firm | 89 | 0 | 0 |
The number of applications granted per year reflects the high volumes of activity in this area. We have counted each application for each type of role-holder position in the table below. For example, if an individual has applied to be a compliance officer for legal practice and manager, we have counted both applications.
Withdrawals can be made for a range of reasons. These include:
- an individual realises part-way through the application process that they will not be able to meet our requirements
- a firm decides to change who it nominates for a role-holder position
- administrative reasons.
We will refuse an application for approval of a role-holder where we are not satisfied about the suitability of the individual to hold the relevant role, considering the nature of the role and the individual circumstances.
We detail the numbers granted, withdrawn and refused below.
Applications to authorise new or change of role-holder positions
| Year | Numbers granted | Numbers withdrawn | Numbers refused |
|---|---|---|---|
| 2021/22 | 2,342 | 102 | 5 |
| 2022/23 | 2,268 | 73 | 5 |
| 2023/24 | 2,626 | 61 | 1 |
Our rules are there to protect the public, but we want to make sure they do not unnecessarily get in the way of firms and solicitors offering legal services in new and different ways. We therefore grant waivers to some of our rules. We do this when it is the public interest to do so. Our criteria for granting a waiver include:
- making sure the waiver is compatible with the regulatory objectives in the Legal Services Act, such as protecting and promoting the public interest
- once granted, if there are still appropriate protections in place for the public.
We do not waive any of our rules that are required by statute or other legislation. Our waivers guidance has more information.
Since the introduction of our new Standards and Regulations in 2019, our rules no longer prevent solicitors from working in firms we do not regulate, and which are not regulated by any other legal services regulator. Before this, a solicitor who wanted to work in this way would have needed a Practice Framework Rules waiver and they would not have been allowed to handle client money. The numbers in the table below reflect that these waivers have not been required, and therefore not granted, since 2018/19.
There are other areas where we have seen a reduction in waivers. This is probably because of the introduction of our Standards and Regulations, which are less prescriptive, empowering solicitors and firms to make decisions around how they provide and manage legal services, in line with core principles focused on high professional standards. We also revised our waivers guidance in 2018. Since then, we no longer issue waivers if there is another reasonable way for the applicant to achieve their objective.
Waivers granted
A definition of each waiver can be found in the glossary.
You can also see a list of the waivers we have granted under our register of waivers.
| Number granted in | Auth Rules | Practice Framework Rules | To support innovation | Professional indemnity insurance (PII) requirements | To obtain Accountants' Reports | Compensation fund fee |
|---|---|---|---|---|---|---|
| 2017/18 | 19 | 38 | 3 | 6 | 6 | 2 |
| 2018/19 | 28 | 33 | 2 | 4 | 9 | 3 |
| 2019/20 | 76 | n/a | 2 | 7 | 5 | 2 |
| 2020/21 | 48 | n/a | 1 | 19 | 4 | 0 |
| 2021/22 | 35 | n/a | 0 | 3 | 5 | 3 |
| 2022/23 | 28 | n/a | 0 | 5 | 3 | 0 |
| 34 | n/a | 0 | 7 | 0 | 4 |
Of the approximately 9,150 firms we regulate, around 374 law firms have their head office in Wales (circa 4%). Approximately 4,000 of the 172,000 practising solicitors we regulate are based in Wales (circa 2%).
Wales-based law firms' turnover came to £534m in 2023/24, up £41m compared with 2022/23.
The table below shows past information for 2016 to 2019 for 'Practising certificate holders who indicate they speak Welsh', and 'Practising certificates issued in Welsh'. Since 2020, we have issued all our practising certificates in both English and Welsh and we no longer ask individuals if they speak Welsh. This is to make sure we treat both languages equally.
Regulation in Wales – firms
| Year | Turnover | Head offices based in Wales | Percentage of law firms based in Wales |
|---|---|---|---|
| 2017/18 | £410m | 443 | 4% |
| 2018/19 | £428m | 431 | 4% |
| 2019/20 | £435m | 420 | 4% |
| 2020/21 | £442m | 400 | 4% |
| 2021/22 | £480m | 397 | 4% |
| 2022/23 | £493m | 378 | 4% |
| 2023/24 | £534m | 374 | 4% |
Regulation in Wales – individuals
| Year | Practising certificate holders based in Wales | Practising certificate holders who indicate they speak Welsh | Practising certificates issued in Welsh |
|---|---|---|---|
| 2017/18 | 3,885 | 1,172 | 793 |
| 2018/19 | 3,927 | 1,205 | 783 |
| 2019/20 | 4,003 | 1,182 | 776 |
| 2020/21 | 4,033 | No longer collected | All PCs now issued in both languages. |
| 2021/22 | 4,015 | No longer collected | All PCs now issued in both languages. |
| 2022/23 | 3,973 | No longer collected | All PCs now issued in both languages. |
| 2023/24 | 3,904 | No longer collected | All PCs now issued in both languages. |
We offer advice to the profession on how to comply with our rules. We offer guidance through our telephone helpline, webchat, and formal written correspondence. People can contact us anonymously for our help. We do not offer legal advice through this service.
The figures below show the number of recorded queries we responded to via our helpline, webchat and formal written correspondence.
| Year | Combined number of answered ethics queries |
|---|---|
| 2019/20 | 25,684 |
| 2020/21 | 27,230 |
| 2021/22 | 25,275 |
| 2022/23 | 26,744 |
| 2023/24 | 25,991 |
- Alternative business structure (ABS)
- A structure that allows non-lawyers to own or invest in law firms. Under the Legal Services Act, these are also known as 'licensed bodies' and 'non-authorised persons', respectively.
- Authorisation
- Where we consider applications from individuals and firms who want to enter the regulated legal services market.
- Incorporated company
- An incorporated company is a business that becomes a separate legal organisation once it is registered with Companies House. This means the company, not the individuals running it, enters into contracts and is responsible for its own debts, and it continues even if directors or owners change. The company follows written rules called articles of association, which set out how decisions are made and how the business is run. Many people choose this structure because it helps protect their personal finances.
- Limited liability partnership (LLP)
- An LLP is a business structure that, once registered with Companies House, becomes a separate legal organisation from the people or organisations that own and run it, called its members. The members share responsibility for running the business, but their personal finances are protected if the LLP owes money or faces a claim. The LLP carries on even if its members change, and it is run according to a private agreement between them. Many firms choose this model because it offers flexibility while reducing personal financial risk.
- Partnership (also known as a general partnership)
- A general partnership is when two or more people decide to run a business together and share the profits. Unlike an incorporated company or an LLP, the partnership is not a separate legal organisation, so the business cannot own property or enter contracts in its own name. Each partner can make decisions and agreements that legally commit the others, and the partners are personally responsible for all the business's debts. Some people choose this model because it is simple to set up and run, with very few formal requirements.
- Practising certificate
- A licence we issue each year to solicitors, RELs and RFLs. It must be renewed annually if the individual wishes to continue practising.
- Registered European lawyer (REL)
- An REL is a Swiss-qualified lawyer who is registered and regulated by us to practise in England and Wales under their Swiss professional title. Before Brexit, this status was available to lawyers from EU and European Economic Area states. Since Brexit, it applies only to certain Swiss lawyers who registered by 31 December 2024. RELs can advise on the law of their home jurisdiction and on English and Welsh law, and can carry out some reserved legal activities, subject to specific restrictions.
- Registered foreign lawyer (RFL)
- An RFL is a foreign-qualified lawyer who is registered with us and subject to our regulatory oversight, but with limited practice rights. RFLs may practise the law of their home jurisdiction, advise on English and Welsh law, and provide unreserved legal services, but they can only carry out most reserved legal activities in limited and supervised circumstances. Registration as an RFL allows a foreign lawyer to be a manager or owner of an SRA-regulated law firm.
- Registered Swiss lawyer
- An RSL is a Swiss-qualified lawyer who is registered and regulated by us in order to qualify as a solicitor through a three-year supervised adaptation period, introduced after Brexit. During that period, RSLs may advise on English and Welsh law and carry out some reserved legal activities, but only under supervision and with limitations. On successful completion of the adaptation period, an RSL may apply for admission as a solicitor of England and Wales.
- Roll of solicitors
- This is a record of solicitors we have admitted to practise English and Welsh law. Although admitted to practise English and Welsh law, not all solicitors on the roll will actively be practising the law. For example, some may be retired or on a parental leave break. RFLs, RSLs and RELS are not counted on the roll of solicitors.
- Sole practitioner (recognised sole practice)
- A solicitor who runs their own legal practice as a self-employed person. Where that business needs to be regulated by us, we refer to them as sole practitioners. Like a partnership, sole traders do not need to register their business with Companies House and therefore do not need to publish their business's accounts. A sole practitioner business has no separate legal identity. It is not a separate person from the individual who operates it, and they have full liability for it.
- A sole practitioner arrangement offers a lot of simplicity for small businesses, but it has its limitations. As well as the individual having full liability, all profits of the business are taxed as personal income.
Authorisation Rules
We may waive some of our Authorisation Rules to allow firms or individuals to do something our rules prohibit but which statute allows. We may do this if we feel there is unnecessary duplication of regulatory requirements.
Compensation fund fee
We may agree that firms do not have to contribute to the compensation fund. We may do this where a firm has only held a very small amount of client money for a very short period, and there is no risk of their clients making a claim on the fund.
Practice Framework Rules
We used to grant waivers to our Practice Framework Rules on how and where solicitors and other people we regulate could work. We did this if we were satisfied there was no risk to the public in doing so. For example, we granted waivers allowing solicitors to work in firms we did not regulate, and which were not regulated by another legal services regulator, so long as they did not handle client money. These rules no longer exist. Under the new Standards and Regulations, brought in in 2019, this arrangement is now allowed.
Professional indemnity insurance (PII) requirements
We can agree that firms do not have to get PII that meets the minimum terms and conditions set out in our rules. We have done this in instances where the firm has an alternative insurance policy that has equivalent or better terms than our own.
To obtain accountants' reports
We can agree that firms do not need to obtain an annual report of their accounts. For example, a one-off exception leads to a large payment of money being paid into a firm's client account, the threshold for which had otherwise always been within the exemption as set out in the Accounts Rules.
To support innovation
To encourage greater innovation, we work collaboratively with firms and innovators to make sure certain proper protections are included when they deliver legal services in new ways. This often involves a waiver, as well as additional controls and monitoring.