Who qualifies for the reporting exemption, and what are the size limits?

Routes in s.359

1. Small private company: any two of: total revenue not above HK$100 million; total assets not above HK$100 million; average employees not above 100 (Schedule 3, s.1(1)).
2. Private company with no subsidiary, and not itself a subsidiary: all members agree in writing for the year. No size test.
3. Eligible private company: revenue and total assets up to HK$200 million (and not above 100 employees, per two of three), and members' approval by resolution (at least 75%, with no votes against, under s.360).
4. Small company limited by guarantee: revenue up to HK$25 million.
5. Groups of small or eligible companies under aggregate limits (ss.364-365).

Disqualification Once qualified, a company loses small status if it fails two of the three tests for two consecutive years (s.361(4)).

Excluded companies Banks, insurers, SFC-licensed corporations and companies that take loans of money at interest by way of business are excluded (s.359(4)).

Note HKICPA's current SME-FRF & SME-FRS page repeats the same thresholds: HK$100 million revenue, HK$100 million assets and 100 employees for small private companies; HK$200 million for eligible private companies; HK$25 million revenue for small guarantee companies.