Business Categories

Definition

Four categories of companies are defined in the implementing decree of the law for the modernization of the economy (decree n ° 2008-1354) for the purposes of statistical and economic analysis:

small and medium-sized enterprises including micro-enterprises;

mid-size companies;

the big enterprises.

To determine the category to which a company belongs, the following data, relating to the last closed accounting year and calculated on an annual basis, are used: headcount, turnover and balance sheet total.

Small and medium-sized enterprises (SMEs) are those which, on the one hand, employ less than 250 people, on the other hand, have an annual turnover not exceeding 50 million euros or a balance sheet total n 'not exceeding 43 million euros. Among them, microenterprises employ less than 10 people and have an annual turnover or balance sheet total not exceeding 2 million euros.

Intermediate-sized enterprises (ETI) are enterprises which do not belong to the category of SMEs and which, on the one hand, employ less than 5,000 people, on the other hand, have an annual turnover of n ' not exceeding 1,500 million euros or a balance sheet total not exceeding 2,000 million euros.

Large enterprises (GE) are enterprises not classified in the preceding categories.

Note

The concept of enterprise and the category of enterprise are defined in the implementing decree (n ° 2008-1354) of article 51 of the law of modernization of the economy, “relating to the criteria making it possible to determine the category of belonging to a company for the purposes of statistical and economic analysis ”.

Size criteria for companies

The size criteria determine the model of the annual accounts to be filed.

In principle, whether or not the size criteria are exceeded is assessed on an individual basis of the company accounts.

The size of parent companies is calculated on a consolidated basis, that of related companies is done on an individual basis (unless they are themselves a parent company). (Opinion 2018/22 of the Accounting Standards Commission) (see also 'Small group')

Since the transposition of Directive 2013/34 / EU into Belgian law, the thresholds relating to annual turnover and the balance sheet total have been increased. (Law of December 18, 2015)

The thresholds for small and large companies.

Staff 50 FTE

Turnover 9,000,000 euro

Balance sheet total 4,500,000 euro

Large company - complete model

A company is considered large if it exceeds 2 of the 3 thresholds or if it is listed on the stock exchange.

Large companies should use the full model.

Small society - abridged model

A company is small if it has not exceeded more than one of the above mentioned thresholds (art. 1:24, CSA).

Smaller companies can use the short model.

Micro-company - micro-model

A company is a micro-company if it does not exceed more than one of the criteria below. (art. 1:25, CSA)

Microsociety is a subcategory of small companies. All the rules for small companies apply.

Thresholds for micro-companies

Staff 10 FTE

Turnover 700,000 euro

Balance sheet total 350,000 euro

Micro companies can use the micro model.

At the closing date, a micro-company cannot be a subsidiary company or a parent company.

Small group

(CSA. Art. 1:26)

A company and its subsidiaries, or the companies that together constitute a consortium, are considered to form a small group with its subsidiaries when these companies do not exceed more than one of the following limits (on a consolidated basis):

Staff number 250 FTE

Turnover 34,000,000 euro

Balance sheet total 17,000,000 euro

A company that belongs to a small group is exempt from the obligation to prepare consolidated accounts.

In the other case, a consolidated account must be deposited..

The Big Company

A company is called GE when it has more than 5000 employees. The presence of this category allows SMEs to have a place. Indeed, a large company is often the source of the subcontracting system, often supplying SMEs.

Small and Medium Business

According to the European Union, an SME is an establishment made up of employees ranging from 50 to 250 people. As for the turnover, they vary from an amount that does not go beyond 50 million euros.

The European Union also states that for turnover of less than 10 million euros and for a workforce of less than 50, a company is categorized as a small business.

For Decree No. 2008-1354 of December 18, 2008, France considers an SME establishment when it meets the following criteria:

a number of employees of less than 250 people

a turnover of less than 50 million euros per year

VSE and ETI

The Very Small Company

Referring to the definition of the European Union, the main criteria for a VSE are a workforce of less than 10 people and a turnover of less than 2 million euros. The criteria set out in French Decree 2008-1354 of December 18, 2008 do not differ too much from those set out by the European Union.

The Mid-Size Company

To be classified in the ETI or Mid-Size Company category, the number of employees must not exceed 5,000 people. The company must also have a maximum turnover of 1.5 billion euros as well as an annual balance sheet not exceeding 2 billion euros. In any case, an ETI does not fall into the category of Small and Medium Enterprises.

It is therefore the turnover achieved in one year, the annual balance sheet as well as the number of staff that constitute the difference between an ETI and a VSE.

The PMI

 

The PMI (Small or Medium Industry) is a company with more than 10 employees but generally no more than 250. The annual turnover remains below 50 million euros in PMI. Unlike an SME, a SMI focuses its activity on the extraction or processing of goods.