Pursuant to the Grand-Ducal Regulation of 25 October 2024, published on 7 November 2024, the size criteria under the Law of 19 December 2002 on the register of trade and companies as well as the accounting and annual accounts of companies, as amended (the “2002 Law”) in addition to those for the exemption from consolidation for groups pursuant to the Law of 10 August 1915 on commercial companies, as amended (the “1915 Law”), have been adjusted upwards following Delegated Directive (EU) 2023/2775 of 17 October 2023.
This update aims at harmonizing the classification of companies/groups according to their size, reflecting recent inflation with the purpose of creating administrative simplification. These new criteria apply starting from financial years beginning on 1 January 2023.
In the 2 tables below, to be classified in one of the categories, a company/group must exceed (or no longer exceed) 2 of the 3 quantified criteria limits during 2 successive financial years.
Size of a company with respect to its annual accounts – Article 35 and 47 of the 2002 Law
Size of a company with respect to its annual accounts – Article 35 and 47 of the 2002 Law (Graphic Design: DSM Avocats)
NOTE: Whether or not a company exceeds the category criteria has a significant impact on a certain number of its obligations (presentation of the accounts, publication obligations, auditing of accounts, etc.). For example, medium-sized and large companies are required to have their annual accounts audited by one or several accredited auditors.
Consolidation exemption according to group size – Article 1.711-4 of the 1915 Law
Consolidation exemption according to group size – Article 1.711-4 of the 1915 Law (Graphic Design: DSM Avocats)
For any questions or assistance concerning these new criteria, and particularly their applicability, do not hesitate to contact DSM Avocats à la Cour.
By Jean-Philippe FRANCOIS, Partner – Avocat à la Cour.