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Last checked: 12/04/2019

Accounting for small and micro businesses

UK decision to invoke Article 50 of the TEU: More information

As of 30 March 2019, all EU law will cease to apply to the UK, unless a ratified withdrawal agreement establishes another date, or the European Council and the UK decide unanimously to extend the two-year negotiation period. For more information about the legal repercussions for businesses:

You are required by law to keep annual accounts. Limited liability companies of any size doing business in the EU, have to prepare a set of financial statements and file them with the relevant national business register.

If you are self-employed, or if you run an unlimited liability company, such as a sole-proprietorship or a general partnership, your business is not regulated by EU rules. In these cases, you should check the national rules with the authorities in the EU country where your business is established.

Simple rules for small businesses

If you run a small company (not more than 50 employees), in most cases you only need to provide financial statements that consist of a balance sheet, an account of the profits and losses, and basic explanatory notes. Some EU countries may also require an audit and a management report.

Extra-simple rules for micro-companies

A business is considered a micro-company if it complies with at least two of the following criteria over two consecutive years (in some cases EU countries may set lower limits):

Depending in which EU country your company is established, the extra-simple rules for micro-companies may feature the following:

EU countries currently applying simplified accounting rules

(Table last updated March 2019)

EU country Simplified accounts and some exemptions from the reporting obligations have been granted to micro companies and/or small and medium-sized enterprises
Austria Yesde
Belgium Yes
Bulgaria Yes
Croatia Yes
Cyprus Yes
Czechia No

Denmark

No
Estonia No
Finland No
France Yes
Germany Yes
Greece -
Hungary Yes (micro businesses)hu
Iceland Yes
Ireland Yes
Italy Yes
Latvia -
Lithuania Yes
Luxembourg Yes
Malta Yes
Netherlands No
Norway Yes
Poland Yes
Portugal Yes
Romania Yes
Slovakia Yes
Slovenia -
Spain Yes (micro businesses)
Sweden No
United Kingdom Yes

Related topics

EU legislation

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