In order to help all EU based companies for limiting administrative burdens, in particular for small and micro-companies, the EU decided by a EU Directive 2013/34/EU to have a comparable and clear company financial statements across the EU.

Keeping annual accounts is not only a legal obligation, it enables you to monitor the health of your business by keeping track of receipts and expenses. Companies with limited liability doing business in the EU, whatever the size, have to prepare a set of financial statements and file it with the relevant national business register.

If you are self-employed or if your business is incorporated in a type with unlimited liability, your business is not regulated by EU rules: you should check the rules which have been decided by each Member State.

Simple rules for small businesses

If you are a small company (not more than 50 employees), the financial statements comprise only a balance sheet, a profit and loss account, and a few explanatory notes. A Member State may additionally require an audit and a management report.

Extra-simple rules for micro-companies

Micro-companies are those which have:
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  • Not more than 10 employees.
  • Balance sheet total below EUR 350 000
  • Net turnover below EUR 700 000

--> Member States may set lower amounts: please check in any case the relevant figures. If your small business exceeds 2 of these 3 criteria for 2 consecutive years, the rules of small companies will apply!

Depending on the Member State where you are located, the extra-simple regime for micro-companies may feature the following:

  • Reduced information in the notes to the accounts - any item explained at the foot of the balance sheet need not be explained in the annual report
  • Simplified publication of your accounts - they can be sent to a single national authority, such as your tax authority, which publishes them on your behalf
  • Simplified layout for the balance sheet and profit & loss statement
  • No obligation to calculate year-end accruals and prepayments - except for costs of raw materials and consumables, staff, value adjustments and tax

Even though these simplified rules are permitted by the EU law, not all EU countries apply them.


Read here the EU Legislation.
Check below the national rules:
Austria
Das österreichische Recht erlaubt kleinen und mittleren Unternehmen oder Kleinstunternehmen vereinfachte Jahresabschlüsse.
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Für KMU und Kleinstunternehmen bestehen bestimmte Ausnahmen von den Finanzberichterstattungspflichten.

Siehe auch: hier und hier 
National legislation allows allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
​
More information (in German):  here  and  here.
Belgium...
La législation nationale autorise les comptes simplifiés dans le cas des petites entreprises.

Les Comptes Annuels
National legislation allows for simplified accounts in the case of small enterprises.
​
Annual Accounts
....Belgium
Recht erlaubt kleinen Unternehmen vereinfachte Jahresabschlüsse.


Hinterlegung des Jahresabschlusses
Voor kleine bedrijven volstaat op grond van de nationale wetgeving een vereenvoudigde jaarrekening.

Hier
Bulgaria
В националното законодателство са предвидени опростени отчети за малките и средните предприятия и за микропредприятията.

Тези предприятия са освободени от някои задължения за отчитане.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Croatia
U nacionalnom zakonodavstvu dopušteni su pojednostavljeni financijski izvještaji za mala i srednja poduzeća.

Malim i srednjim poduzećima odobrena su neka izuzeća od obveza izvješćivanja.
National legislation allows simplified accounts in the case of small and medium-sized enterprises.

Some exemptions from the reporting obligations have been granted to SMEs.
Cyprus
Η εθνική νομοθεσία επιτρέπει την υποβολή απλουστευμένων λογαριασμών στην περίπτωση μικρών/μεσαίων επιχειρήσεων.
National legislation allows for simplified accounts in the case of small/medium-sized enterprises.
Czech Republic
Vnitrostátní právní úprava neumožňuje malým a středním podnikům, ani mikropodnikům sestavovat účetní závěrku vezjednodušeném rozsahu.
National legislation doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Denmark
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Paragraph. Cliquer ici pour modifier.
Estonia
Siseriiklikud õigusaktid ei võimalda lihtsustatud raamatupidamist väikeste ja keskmise suurusega või mikroettevõtjate puhulValue
National legislation doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Finland
Pienyrityksille ja mikroyrityksille on myönnetty raportointivelvoitteiden osalta joitakin poikkeuksia.
Some exemptions from the reporting obligations have been granted to small companies and micro companies.
France
La législation française permet une comptabilité simplifiée, et certaines exemptions dans l'obligation de déclaration, pour les petites et micro-entreprises.
The French legislation allows for simplified accounts in the case of small or micro enterprises.
Some exemptions from the reporting obligations have been granted to small or micro companies.
Germany
Das deutsche Recht erlaubt kleinen und mittleren Unternehmen oder Kleinstunternehmen vereinfachte Jahresabschlüsse.

Für KMU und Kleinstunternehmen bestehen bestimmte Ausnahmen von den Finanzberichterstattungspflichten.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Greece
Η εθνική νομοθεσία επιτρέπει / δεν επιτρέπει απλουστευμένους λογαριασμούς στην περίπτωση μικρών/μεσαίων ή πολύ μικρών επιχειρήσεων.
Ορισμένες εξαιρέσεις από τις υποχρεώσεις υποβολής εκθέσεων έχουν χορηγηθεί σε ΜΜΕ ή πολύ μικρές επιχειρήσεις.
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Hungary
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Paragraph. Cliquer ici pour modifier.
Iceland
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Paragraph. Cliquer ici pour modifier.
Ireland
National legislation allows for simplified accounts in the case of small enterprises.
Some exemptions from the reporting obligations have been granted to SMEs.'
Paragraph. Cliquer ici pour modifier.
Italy
La normativa nazionale consente la contabilità semplificata nel caso delle piccole e medie imprese o delle microimprese.

Le PMI o le microimprese beneficiano di alcune esenzioni dagli obblighi di segnalazione.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.

Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Latvia
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
.
Liechtenstein
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
.
Lithuania
Lietuvos bendrovės, kurios atitinka kriterijus, nustatytus Ūkio subjektų finansinių ataskaitų įstatyme, gali naudoti:
  • sutrumpintą balanso formą;
  • sutrumpintas pelno (nuostolio) ataskaitos formas;
  • teikti mažiau informacijos aiškinamajame rašte.
Šios bendrovės turi parengti nuosavo kapitalo pokyčių ataskaitą, tačiau jos neprivalo rengti pinigų srauto ataskaitos.
.
Luxembourg
La législation nationale prévoit une comptabilité simplifiée pour les petites, moyennes et micro-entreprises.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Malta
Il-leġiżlazzjoni nazzjonali tippermetti lil mikrointrapriżi jew intrapriżi ta' daqs żgħir/medju biex jippreparaw kontijiet simplifikati skont il-Prinċipji Ġenerali ta' Kontabilità għal Entitajiet Iżgħar ( GAPSE ), li huma ferm inqas preskrittivi mill-Istandards Internazzjonali ta' Rapportar Finanzjarju ( IFRS ).
National legislation allows small/medium-sized or micro enterprises to prepare simplified accounts under the General Accounting Principles for Smaller Entities (GAPSE) regime, which is far less prescriptive than the International Financial Reporting Standards (IFRS)
Netherlands
De nationale wetgeving biedt geen ruimte voor een vereenvoudigde jaarrekening voor het midden- en kleinbedrijf of micro-ondernemingen.
National legislation doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Norway
Nasjonal lovgivning åpner for forenklet bokføring for mindre virksomheter.


Små og mellomstore virksomheter kan ha fritak fra enkelte rapporteringsplikter.
National legislation allows for simplified accounts in the case of small enterprises.

Small and medium sized enterprises may be exempted from certain reporting obligations.
Poland
Ustawodawstwo krajowe zezwala na sporządzanie uproszczonych sprawozdań finansowych w przypadku małych i średnich przedsiębiorstw lub mikroprzedsiębiorstw.

Niektóre zwolnienia z obowiązku sprawozdawczego zostały przyznane MŚP lub mikroprzedsiębiorstwom.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Portugal
A legislação nacional autoriza as pequenas e médias empresas e as microempresas a manterem uma contabilidade simplificada.

Para mais informações sobre as contas anuais, consulte a seguinte ligação.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
You can read more on annual accounts by accessing the following link ( Portuguese only).
Romania
Legislația națională permite contabilitatea simplificată pentru întreprinderile mici și mijlocii, precum și unele scutiri de la obligațiile de raportare.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.

Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Slovakia
Vnútroštátne právne predpisy umožňujú malým a stredným podnikom alebo mikropodnikom viesť jednoduché účtovníctvo.
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Slovenia
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
.
Spain
La legislación nacional permite la contabilidad simplificada en el caso de pequeñas/medianas empresas que cumplan una serie de requisitos.Para ello durante dos ejercicios consecutivos reúnan, a la fecha de cierre de cada uno de ellos, al menos dos de las siguientes circunstancias:

  • Que el total de las partidas del activo no supere un millón de euros. A estos exclusivos efectos, el total activo deberá incrementarse en el importe de los compromisos financieros pendientes derivados de los contratos descritos en el artículo 5.
  • Que el importe neto de su cifra anual de negocios sea inferior a dos millones de euros.
  • Que el número medio de trabajadores empleados durante el ejercicio no sea superior a 10.
Spanish law allows simplified accounts to be reported by small or medium-sized enterprises that meet certain requirements.

They must meet at least 2 of the following criteria on the closing date of 2 consecutive financial years:

  • assets total below EUR 1 000 000. For this purpose, the total assets should increase by the amount of outstanding financial commitments arising from the contracts described in Article 5.
  • annual net turnover below EUR 2 000 000
  • fewer than 10 employees (on average) during the financial year
Sweden
Enligt svensk lag får mikroföretag och små och medelstora företag inte använda sig av förenklade årsbokslut.
National legislation doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Switzerland
National legislation allows / doesn't allow for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
.
United Kingdom
National legislation allows for simplified accounts in the case of small/medium-sized or micro enterprises.
Some exemptions from the reporting obligations have been granted to SMEs or micro companies.
Paragraph. Cliquer ici pour modifier.
International accounting standards

Under the EU's legislation, all listed EU companies must prepare their consolidated accounts in accordance with a single set of global standards - the International Financial Reporting Standards (IFRS). Most Member States also permit the IFRS for the consolidated accounts of non-listed companies. In addition, some Member States have decided to permit or require the IFRS for individual financial statements of certain companies.

These standards are developed by an independent accounting body, the International Accounting Standards Board (IASB) and then adopted by the EU.

Rules for non-EU businesses

To reduce the costs and complexity of trade for all parties, the EU is working towards global convergence of accounting rules. It does so by encouraging non-EU firms trading with the EU to produce their financial reports on the basis of the International Financial Reporting Standards or equivalent national accounting standards.