2.12 Filing requirements Companies (excluding banks and insurance companies) are classified as small, medium or large, and the documents to be filed at the Companies Registry vary according to their classification as set out below: Small
Medium-sized
Large
Net turnover Up to £10.2 million (pro-rated if more than or less than a year)
Up to £36 million
Over £36 million
Balance sheet total (total assets)
Up to £5.1 million
Up to £18 million
Over £18 million
Average no. of persons employed
Up to 50
Up to 250
Over 250
A new classification of “micro-entity” has now now been introduced, defined as a company with net turnover, total assets and employees of less than £632,000, £316,000 and 10, respectively. The filing requirements are the same as for “small” companies. Gibraltar has not adopted FRS 105 “The Financial Reporting Standard applicable to the Micro Entities Regime” accordingly such entities continue to apply Gibraltar Accounting Standards (see 2.11.2) A company must fall within two of the three parameters in the financial year in question and the preceding year in order to be classified as small or medium sized. However, if a company exceeds or ceases to exceed the limits of more than one of the parameters, it will continue to qualify for the relevant year unless that continues to be the case in two consecutive years. For a newly incorporated company, the conditions need only be met in its first financial year. Large companies, Banks and Insurance companies: These must file full accounts, including the balance sheet, profit and loss account, notes, directors’ report and auditors’ report. Medium-sized companies: Filing for medium-sized companies is the same as that for large companies, except that the profit and loss account may be in abridged format. The audit report on the full accounts cannot be filed with the abridged accounts since the latter cannot be deemed to give a “true and fair view.” Instead a special auditors’ report must be filed confirming that, in the opinion of the auditors, the company is entitled to and has properly prepared the accounts in accordance with the Companies Act 2014. Small companies: They are required to file an abridged balance sheet only. The relevant documents must be filed within 13 months of the financial year-end (within 12 months for financial years beginning on or after 1 January 2016) in the case of a private company and 10 months of the financial year-end in the case of a public company. Special rules apply in the case of a company’s first reporting period. The penalty for incorrect or late filing is £100. In addition, a fine up to level 3 on the standard scale (£500) may be incurred. 32
Doing business in Gibraltar