How to determine the company size category

Step 4

The next step to ensure accurate assessment of the company size category is to establish the overall data of the enterprise, including its partner and linked enterprises, in accordance with Article 6 of the Annex to Commission Recommendation 2003/361/EC.

To the headcount, turnover and balance sheet total of the enterprise in question, you should add the relevant data of all partner and/or linked enterprises as follows:

  • Add the proportional headcount and financial data of the partner enterprises in ratio to the percentage interest in the capital or voting rights (whichever is greater) to the headcount and financial data of your enterprise (if you are an OR, then to those of the represented enterprise, of course). Please note that if the partner enterprise situated immediately upstream/downstream (directly or indirectly) is linked to another enterprise, 100% of the data of the linked enterprises must be included in the data of the partner enterprise.
  • Add 100% headcount and financial data of the linked enterprises to the headcount and financial data of the company in question. If the linked enterprise has any partner enterprises situated immediately upstream/downstream (directly or indirectly) or is also linked in a chain to other enterprises (directly or indirectly), add 100% of the data of all the linked enterprises and the percentage equal to the holding of the partner enterprise(s) to the data of the enterprise in question.

If the company or any of its partner and linked enterprises are drawing up consolidated accounts, or are included through consolidation in the accounts of other enterprises, the figures from the consolidated accounts should be used when establishing the data of the enterprise in question.

Example of ownership structure and calculations

Example of SME Ownership Structure

 

Formula for calculations of financial and headcount data of Enterprise A:

A = 100% A + 100% C + 27% (D + F) + 25% (B + E) + 100% (H + I) + 25% J

* Partner-partner relationships are not to be considered.

 

Continue to step 5

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