Companies Act 2014 section 280D

Qualification of company as micro company

Section 280D sets out the conditions under which a company may qualify as a micro company, including the size thresholds and the types of companies that are excluded from this classification.

• A company must first qualify for the small companies regime and then meet at least two of three size thresholds: turnover not exceeding €900,000, balance sheet total not exceeding €450,000, or average employees not exceeding 10.
• For a first financial year, the qualifying conditions need only be met in that year; for subsequent years, the company benefits from a two-year rolling test that provides continuity of status.
• Investment undertakings, financial holding undertakings, holding companies preparing group financial statements, and subsidiaries included in consolidated financial statements of a higher holding undertaking are all excluded from micro company status.
• Where a financial year is shorter or longer than 12 months, the turnover threshold of €900,000 must be proportionately adjusted.