This article, the twelth in our series on the Companies Act 2006, will focus on the categories of company outlining the various size criteria for different groups such as micro-entities, small and mid-sized companies
The Companies Act 2006 refers to small companies as those ‘subject to the small companiesʼ regime’. Small companies benefit from a number of accounting and filing exemptions as noted in the various sections below. In order for a company to be able to apply this regime, it must qualify as small according to size criteria and not be excluded from the regime.
Companies
The qualifying conditions for a company to be treated as a small company in a financial year are that it satisfies any two of the following for that year:
- turnover did not exceed £10.2m;
- the total of assets shown in the balance sheet total did not exceed £5.1m; and
- the average number of people employed by the company in the financial year in question determined on a monthly basis did not exceed 50.
Where a company has prepared accounts in respect of a financial year which is not a 12-month period, the turnover figures are to be proportionately adjusted.
