Company Size and Filing Obligations

Introduction

A company can be defined small, medium  or large. The size of a business is determined by turnover, balance sheet total (i.e.  the total of the fixed and current assets) and the average number of employees. While small and medium-sized companies are exempt from filing full accounts, large companies are obliged to submit full accounts.

The next few pages will explain filing obligations for small, medium and large companies.

Small sized companies

To qualify as a small company at least two of the following conditions must be met:

1. Annual turnover £6.5 million or less
2. Balance sheet total £3.26 million or less  
3. Average number of employees 50 or fewer

A small business files abbreviated accounts that include:

1. Abbreviated balance sheet
2. Special auditor’s report

For additional advice please contact Companies House/Companies Registration Office or consult a financial advisor.

Medium sized companies

To qualify as a medium company at least two of the following conditions must be met:

1. Annual turnover £25.9 million or less
2. Balance sheet total £12.9 million or less
3. Average number of employees 250 or fewer

A medium business files abbreviated accounts that include:

1. Abbreviated profit & loss
2. Balance sheet
3. Special auditor’s report
4. Directors’ report
5. Notes to the account

For additional advice please contact Companies House/Companies Registration Office or consult a financial advisor.

Large sized companies

To qualify as a large company at least two of the following conditions must be met:

1. Annual turnover more than £25.9 million
2. Balance sheet total more than £12.9 million
3. Average number of employees more than 250

A large business files full accounts that include:

1. Profit and loss account
2. Balance sheet
3. Auditor’s report
4. Directors’ report
5. Notes to the accounts
6. Group accounts

For additional advice please contact Companies House/Companies Registration Office or consult a financial advisor.