Directive aims to ”relieve micro-enterprises from red tape”
UPDATE 24 March 2012: Following the EU’s adoption of the Directive on micro-entity reporting in February 2012, the Government has now announced that it intends to take advantage of the new EU regime and will consult on implementation in due course. See this post for details.
The Council of the EU and the European Parliament on 21 February 2012 adopted a “Directive on the annual accounts of certain types of companies as regards micro-entities“. From the Council’s press release:
“The new provisions have the potential to significantly reduce administrative bureaucracy for those companies not exceeding the limits of two of the following criteria: a balance sheet total of EUR 350 000, a net turnover of EUR 700 000 and an average of ten employees during the financial year.
The directive will allow EU member states to exempt micro-enterprises from the publication of annual accounts. This optional exemption will be compatible with national obligations to keep records showing the company’s business transactions and financial situation.”
The Directive will come into force on the twentieth day following its publication in the Official Journal and EU member states will then have to transpose the Directive into their national law.
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