ADVOKS GLOBAL · KENYA
Companies Act
624. Companies qualifying as small: general rules
Edition: 2024-12-27 · In force
624. Companies qualifying as small: general rules
(1)A company qualifies as small in relation to its first financial year if the qualifying conditions are satisfied in that year.(2)A company qualifies as small in relation to a subsequent financial year if the qualifying conditions—(a)are satisfied in that year and the preceding financial year;(b)are satisfied in that year and the company qualified as small in relation to the preceding financial year; and(c)were satisfied in the preceding financial year and the company qualified as small in relation to that year.(3)The qualifying conditions are satisfied by a company in a year in which it satisfies two or more of the following requirements—(a)it has a turnover of not more than fifty million shillings;(b)the value of its net assets as shown in its balance sheet as at the end of the year is not more than twenty million shillings; and(c)it does not have more thantwenty-five employees.(4)For a period that is only part of a company's financial year, the maximum figures for turnover are to be adjusted proportionately.(5)In this section, "the number of employees" means the average number of persons employed by the company in the year, determined as follows—(a)ascertain for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not);(b)add together the monthly totals; and(c)divide the result obtained under paragraph (b) by the number of months in the financial year.