369. LLPs qualifying as small: general
Past version: effective from 21/10/2015 - 20/10/2015
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(1) An LLP qualifies as small in relation to its first financial year if the qualifying conditions are met in that year.
(2) Subject to subsection (3), an LLP qualifies as small in relation to a subsequent financial year if the qualifying conditions are met in that year.
(3) In relation to a subsequent financial year, where on its balance sheet date an LLP meets or ceases to meet the qualifying conditions that affects its qualification as a small LLP only if it occurs in two consecutive financial years.
(4) The qualifying conditions are met by an LLP in a year in which it satisfies both of the following requirements —
|1. Turnover||Not more than 13.5 million US dollars|
|2. Number of employees||Not more than 35|
(5) For a period that is an LLP's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.
(6) The number of employees means the average number of persons employed by the LLP in the year, determined as follows —
(a) find for each month in the financial year the number of persons employed under contracts of service by the LLP in that month (whether throughout the month or not),
(b) add together the monthly totals, and
(c) divide by the number of months in the financial year.
(7) This section is subject to section 370 (LLPs qualifying as small: parent LLPs).