Micro-company: accounting obligations

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.