Company size
The scope of accounting and disclosure obligations , tax breaks , subsidies and support programs depend, among other things, on the legal form and size of a company. The classification into size classes is also necessary for statistical purposes; only in this way can a company compare itself with others and assess its position in the market.
Size criteria
Depending on the objective and point of view of the observer, different key figures are used to determine the relative size of a company:
- Size classes according to financial ratios
- Size classes according to employment indicators
- Number of employees
- Payroll
- Working hours
- Number of workplaces
- Sector-specific size classes
- Output from breweries
- Premium income from insurance companies
- Bed occupancy in the hotel industry
- Transported passengers in the aviation
- Arable land or livestock in agriculture
The classification of a company in a certain size class is often determined not just by one indicator, but by a combination of indicators.
Publication requirements
With regard to the disclosure obligations of companies, there are the statutory accounting obligations , which only apply to corporations , and the disclosure obligations under the Publicity Act , which apply to companies of all legal forms.
Accounting of corporations
Large corporations have stricter requirements for the scope of accounting than small and medium-sized corporations. Small capital companies according to § 267a HGB enjoy further simplifications.
| Type | Workers | Sales in € million | Balance sheet total in € million | |
|---|---|---|---|---|
| Small capital companies are those that do not exceed at least two of the three characteristics below | 10 | 0.7 | 0.35 | |
| Small corporations are those that do not exceed at least two of the three characteristics below | 50 | 12 | 6th | |
| Medium-sized corporations are those that exceed at least two of the three characteristics mentioned above and do not exceed at least two of the three characteristics below | 250 | 40 | 20th | |
| Large corporations are those that exceed at least two of the three following characteristics | 250 | 40 | 20th |
Legal sources: Section 266 (1) Sentence 4 , Section 267 , Section 267a , Section 275 (5) HGB (Germany), Section 221 UGB (Austria)
Disclosure requirements
A company must disclose to the Disclosure Act bill if one for the date of expiry of the fiscal year ( closing date ) and for the two subsequent reporting dates at least apply two of the three following characteristics:
- The balance sheet total of an annual balance sheet prepared on the balance sheet date exceeds EUR 65 million.
- The company's sales in the twelve months prior to the reporting date exceed EUR 130 million.
- The company had an average of more than five thousand employees in the twelve months prior to the reporting date.
In accordance with the provisions of the Disclosure Act, a parent company has to submit accounts in the group if at least two of the three following criteria apply to three consecutive consolidated financial statements:
- The balance sheet total of a consolidated balance sheet prepared as of the consolidated balance sheet date exceeds EUR 65 million.
- The sales of a consolidated income statement prepared as of the closing date for the consolidated financial statements in the twelve months prior to the closing date exceeded EUR 130 million.
- The group companies based in Germany employed an average of more than five thousand people in the twelve months prior to the consolidated financial statements.
Small capital companies are not obliged to disclose, but only to deposit with the tax authorities.
Legal sources: § 3 , § 11 Publicity Act
Company size classes in tax law
VAT statistics
In the sales tax statistics, the companies are classified according to sales size classes: Companies that have provided goods and services.
Companies with sales revenues of <€ 17,500 in the previous year and a sales expectation of <€ 50,000 in the current financial year, which make use of the small business regulation according to § 19 UstG, are not included in the statistics, as sales tax is not levied on these companies.
| of ... euros | to under… euros |
| 17,501 | 50,000 |
| 50,000 | 100,000 |
| 100,000 | 250,000 |
| 250,000 | 500,000 |
| 500,000 | 1 million |
| 1 million | 2 million |
| 2 million | 5 million |
| 5 million | 10 million |
| 10 million | 25 million |
| 25 million | 50 million |
| 50 million | 100 million |
| 100 million | 250 million |
| 250 million | and more |
Based on a definition of the European Union , companies with an annual turnover of up to 2 million euros are classified as micro-enterprises (or micro-enterprises), up to 10 million euros as small companies, up to 50 million euros as medium-sized companies and with a turnover of more than 50 million euros . Euro referred to as a large company.
Source: Federal Statistical Office , Economy and Statistics, October 2012; Sales and their taxation 2010 by Juliane Gude
Corporate income tax statistics
For the purposes of corporate income tax statistics, companies are classified according to the total amount of income generated (profit cases):
| Total amount of income | |
| From… euros | to under… euros |
| 0 | 1 |
| 1 | 10,000 |
| 10,000 | 50,000 |
| 50,000 | 100,000 |
| 100,000 | 1 million |
| 1 million | 5 million |
| 5 million | or more |
Source: Destatis, Annual Corporate Income Tax Statistics
Business tax statistics
For the purposes of trade tax statistics , companies are classified according to trade income, among other things :
| of ... euros | to under… euros |
| 4,000 | |
| 4,000 | 12,100 |
| 12,100 | 24,100 |
| 24,100 | 48,100 |
| 48,100 | 72,100 |
| 72,100 | 125,000 |
| 125,000 | 250,000 |
| 250,000 | 500,000 |
| 500,000 | 2,500,000 |
| 2,500,000 | 5,000,000 |
| 5,000,000 | and more |
Source: Destatis, Fachserie 14 Reihe 10.2
Audit size class
Taxpayers who are subject to the field audit are classified in the size classes
- Large companies (G)
- Medium-sized companies (M)
- Small businesses (K) and
- Micro-enterprises (Kst)
classified.
The delimitation criteria for the examination cycle from January 1, 2013 are contained in this PDF. The classification in size classes is decisive for whether a follow-up audit takes place at the company and which audit period the external audit covers.
Law Source: § 3 audit order
European law
The European Commission has developed its own definition of small and medium-sized enterprises in order to be able to align corporate policy measures more specifically to this corporate area. The main objective is to ensure that support measures are only given to those companies who actually need them.
| Type | number of employees | Annual turnover in million € | Balance sheet total in € million | ||
|---|---|---|---|---|---|
| Micro business | <10 | as well as either | ≤ 2 | or | ≤ 2 |
| Small businesses | <50 | as well as either | ≤ 10 | or | ≤ 10 |
| Medium Business | <250 | as well as either | ≤ 50 | or | ≤ 43 |
The values given are maximum values. Member States can set lower thresholds. As far as can be seen, this definition is also used by other states and institutions to differentiate small and medium-sized companies from large companies.
Institute for SME Research Bonn
For the Institut für Mittelstandsforschung Bonn (IfM), small and medium-sized companies are those that employ fewer than 500 people and have an annual turnover of up to 50 million euros.
Employment Statistics
Employers submit social security reports for their employees subject to social security contributions and marginal employment. The Federal Employment Agency uses this to compile, among other things, employment statistics in which companies and employees subject to social insurance are listed according to company size class:
| Employees |
|---|
| 1-5 |
| 6-9 |
| 10-19 |
| 20-49 |
| 50-99 |
| 100-199 |
| 200-249 |
| 250-499 |
| 500 and more |
Legal source: § 281 SGB III , § 28a SGB IV
Occupational safety
An entrepreneur has the perception of the Occupational Safety Act to order tasks designated company doctors and specialists for occupational safety. The scope of the company medical and safety-related care depends on the size of the company:
- For companies with up to 10 employees, the scope is based on Appendix 1 of the accident prevention regulations .
- For companies with more than 10 employees, the provisions of Appendix 2 of the accident prevention regulations apply.
- Notwithstanding this, an entrepreneur with more than 10 employees but no more than 50 employees can choose an alternative, needs-based company medical and safety-related care model.
Legal source: Accident prevention regulation "Company doctors and specialists for occupational safety" (DGUV regulation 2)
Protection against dismissal
An employer is obliged to report this to the employment agency before leaving
- in companies with generally more than 20 and less than 60 employees more than 5 employees,
- in companies with generally at least 60 and less than 500 employees, 10 percent of the employees regularly employed in the company or more than 25 employees,
- in companies with at least 500 employees, at least 30 employees
discharged within 30 calendar days.
Legal source: § 17 Dismissal Protection Act
Individual evidence
- ↑ Federal Ministry of Finance: Classification in 2013 size classes ( Memento of the original from February 25, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. .
- ↑ EU definition of small and medium-sized enterprises (PDF)
- ↑ IfM definition for small and medium-sized companies
