Last modified:Thursday 31 October 2019
What is the definition of a micro-company?
A company is labelled as ‘micro’ insofar as it exceeds one at most of the following criteria:
- An annual workforce average of 10 full-time employees.
- An annual turnover of 700,000 euros (excl. VAT)
- A balance sheet total of 350,000 euros
Note that a micro-company may not be a parent or subsidiary on the day of the year-end closing.
What are your accounting obligations?
For a micro-company, since 1 January 2016, annual accounts according to the micro model with limited notes have been sufficient. The micro model contains the known components (balance sheet, income statement and notes) but is a simplified version of the abbreviated model for small companies. In addition, micro-companies are dispensed from preparing and publishing an annual report, and they do not have to appoint a statutory auditor for a financial audit.
Good to know: small, unlisted companies that meet the criteria of a micro-company during two consecutive financial years may also use the micro model to draw up their annual accounts.