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Company Size Categories
The Luxembourg's accounting law distinguishes between three categories of companies: small, medium-sized and large companies.
Classifying a company in the appropriate category is decisive since it then entails numerous accounting consequences such as:
- The minimum format of financial statements to be published
- The obligation or not to appoint a company auditor
- The obligation or not to write a management report
Small companies are those that do not exceed, for at least two successive financial years, at least two of the following three criteria:
- Balance sheet total less than €7.5 million
- Turnover less than €15 million
- Workforce less than 50 people
Medium-sozed companies are those that do not exceed for at least two successive financial years at least two of the following three criteria:
- Balance sheet total less than €25 million
- Turnover less than €40 million
- Workforce less than 250 people
Large companies are those that exceed for at least two successive financial years at least two of the following three criteria:
- Balance sheet total more than €25 million
- Turnover more than €40 million
- Workforce more than 250 people
The change of size category in one direction or the other only takes effect from the first financial year following the exceeding (or non-exceeding) of two criteria for two successive financial years.
Source: Grand-Ducal Decree dated October 25th, 2024
