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 25^th, 2024