Qualification of Company Based on Size
Micro Companies Regime
To be eligible to qualify as a micro company, a company must not, in the first instance, be an investment undertaking, a financial holding undertaking, a holding company which prepares group financial statements, nor a subsidiary included in the consolidated financial statements of a higher holding undertaking. If none of these factors are present, then the company must qualify for the small companies regime (considered infra), and fulfil at least two of the following requirements:
the turnover of the company must not exceed €700,000.00;
the balance sheet total must not exceed €350,000.00;
the average number of employees must not exceed 10 persons.
Small Companies Regime
To be eligible to qualify as a small company, a company must not, in the first instance, be a holding company or one which has transferable securities admitted to trading on a regulated market, a credit institution, an insurance undertaking, nor otherwise be ineligible. If none of these factors are present, then the company must satisfy at least two of the following requirements:
the turnover of the company must not exceed €12,000,000.00;
the balance sheet total must not exceed €6,000,000.00;
the average number of employees must not exceed 50 persons.
Medium Companies Regime
To be eligible to qualify as a medium company, a company must not, in the first instance, be a company qualifying as a micro company, a company qualifying as a small company, a holding company, nor otherwise be ineligible. If none of these factors are present, then the company must satisfy at least two of the following requirements:
the turnover of the company must not exceed €40,000,000.00;
the balance sheet total must not exceed €20,000,000.00;
the average number of employees must not exceed 250 persons.
Large Companies Regime
If a company does not qualify as a micro company, as a small company, nor as a medium company, it is deemed to qualify as a large company.
Assistance in Classifying Your Company
For financial reporting purposes, it is important to ascertain which regime your company qualifies for. Should you require assistance in doing so, we invite you to get in touch with us at your convenience. Alternatively, your company’s chartered accountant will be in a position to advise you. If you do not have one and are an existing Client, we are prepared to make an introduction for you.
