The Commission Recommendation 2003/361/ EC, as published in the Official Journal of the European Union L 124, p. 36 of 20 May 2003, is the sole authentic basis for determining the conditions regarding qualification as an SME.
The aim of this webpage and video is to provide companies with simplified guidance when applying the SME definition. It is not legally binding, and its authors may not be held liable in any way whatsoever.
Your company is a small-sized enterprise if:
Or
| Your company is a medium-sized enterprise if:
Or
|
When calculating your staff number, turnover and balance sheet total, it is important to understand the scope of data that you need to take into account. Unless your company qualifies as an autonomous enterprise, you need to include your legal entity as well as other legal entities considered linked or partner to your legal entity.
Partner entities are all legal entities that have a direct or indirect shareholding link or voting rights with your legal entity spanning between 25% and 50%. The staff, turnover, and balance sheet figures of partner entities consolidate proportionately with the data of your legal entity.
Your enterprise is considered linked with another enterprise when:
The full staff, turnover, and balance sheet figures of linked entities are added at 100% with the data of your legal entity to perform a sound SME assessment.
You should also take into account a relationship of this kind when it occurs through one or more individuals acting jointly, including through members of the same family, but only if the enterprises operate on the same or adjacent market.
Whether an enterprise draws up consolidated accounts or not, the ultimate data to consider should include the data of:
Partner-partner relationships are not to be considered.
Several practical examples of how to calculate figures correctly are provided in our tutorial video above.
Do you have doubts about the assessment scope of your company?