Company Size Definitions
Company Size Definitions
company size definitions help ensure that companies are regulated in a manner that is fair, efficient, and proportional to their size and economic impact. These definitions allow for a balanced approach to corporate regulation, ensuring that smaller companies can grow without excessive regulatory burdens, while larger companies are held accountable through stricter reporting and compliance requirements.
Company size definitions and exclusions are used by Companies House to determine what information a company needs to file (e.g. abbreviated or full accounts). A company must meet certain conditions to be classified as, Micro, Small, Medium or Large. You can estimate the size of a company by checking the type of accounts they are filling with Companies House.
| Filing Type | Description | Turnover | Balance Sheet | Employees |
|---|---|---|---|---|
| Micro Entity | Micro-entities can file abridged accounts, to qualify as a micro-entity it must meet at least two of the following criteria. | Annual turnover is £632,000 or less | The balance sheet total does not exceed £316,000 | The average number of employees is not greater than 10 |
| Small Company | Small companies can file abridged accounts, to qualify as a small company it must meet at least two of the following criteria. | Annual turnover is £10.2 million or less | The balance sheet total does not exceed £5.1 million | The average number of employees is not greater than 50 |
| Medium Company | Medium companies can file reduced accounts, to qualify as a medium company it must meet at least two of the following criteria. | Annual turnover is £36 million or less | The balance sheet total does not exceed £18 million | The average number of employees is not greater than 250 |
| Large Company | Large companies must file full accounts, to qualify as a large company it must meet at least two of the following criteria. | Annual turnover is more than £36 million | The balance sheet total is more than £18 million | The average number of employees is greater than 250 |
| Dormant Company | Dormant companies have had no significant accounting transactions during their financial year and accounting period. In essence, it’s not trading and it is not spending or receiving any money. Dormant companies file the simplest accounts. | N/A | N/A | Dormant companies have had no significant accounting transactions during their financial year and accounting period. In essence, its not trading and it is not spending or receiving any money. Dormant companies file the simplest accounts. |
There some addition filings types which don’t fall into any of the above definitions these are:
Public Limited Company (PLC): These must adhere to stringent reporting standards. PLCs are required to prepare and submit full accounts, regardless of their size, and are subject to regular audits. They must also meet higher capital requirements.
Group Companies: For group companies, the size thresholds are applied to the group as a whole. Subsidiaries within a larger group may be classified differently depending on the group’s structure and size.
Useful Links for Further Reading:
Here are some useful links to help you understand the Companies House company size definitions and related filing requirements:
- Companies House – Accounts and Filing Requirements
This page provides details on filing accounts based on company size, including deadlines and exemptions for micro, small, and medium-sized companies.
Companies House Filing Accounts Guidance - GOV.UK – Company Accounts, Returns and Confirmation Statements
This government page explains the overall filing requirements for company accounts and how they apply to different company sizes, including exemptions.
GOV.UK – Company Accounts Guidance - Companies House – Micro-Entity Accounts
This page explains the simplified reporting requirements for micro-entities, and the criteria a company must meet to be classified as such.
Micro-Entity Accounts Information - Institute of Chartered Accountants in England and Wales (ICAEW)
This resource offers detailed insights into company size thresholds and reporting requirements, particularly for small and medium-sized companies.
ICAEW – Reporting Requirements for Small Companies
« Back to Glossary IndexFor more detailed insights on individual company sizes, explore our Business data product which provides extensive Company Data on all UK registered companies.