Companies Act 2014 section 280A

Qualification of company as small company: general

Section 280A sets out the criteria a company must meet to qualify as a small company, including the size thresholds, the rules for first and subsequent financial years, and the categories of company that are excluded from qualifying.

• A company qualifies as small if it meets at least two of three size tests: turnover not exceeding €15 million, balance sheet total not exceeding €7.5 million, and average employees not exceeding 50.
• For a company's first financial year, it need only satisfy the qualifying conditions in that year; for subsequent years, a two-year rolling test applies, giving the company a one-year grace period if it drops in or out of the thresholds.
• Holding companies and ineligible companies are excluded and cannot qualify as small, regardless of their size.
• Where a financial year is shorter or longer than 12 months, the turnover threshold must be proportionately adjusted to reflect the actual length of the period.