definition of small company companies act 2006
Answers
The Companies Act 2006 (CA 06) has not made substantial changes to the detailed accounting provisions in previous legislation, but has adopted a different approach to the presentation of the provisions. In order to simplify the legislation, Part 15 CA 06 'Accounts and Reports' is structured so that provisions which apply to different kinds of company are easily identifiable, namely small companies, other companies that are not quoted, and quoted companies. Detailed accounting provisions are no longer included in schedules, as they were under the Companies Act 1985, but in secondary legislation
In the UK, sections 382 and 465 of the Companies Act 2006 define a SME for the purpose of accounting requirements. According to this a small company is one that has a turnover of not more than £6.5 million, a balance sheet total of not more than £3.26 million and not more than 50 employees. A medium-sized company has a turnover of not more than £25.9 million, a balance sheet total of not more than £12.9 million and not more than 250 employees.