Micro Company
/ˈmaɪkrəʊ ˈkʌmpəni/
Discover what a micro company is, including its defining characteristics such as turnover, balance sheet totals, and employee count. Learn more now!
What qualifies a business as a micro company?
A micro company must meet at least two of three criteria: annual turnover not exceeding €900,000, balance sheet total not exceeding €450,000, and average number of employees not exceeding 10. These are the 2025 figures for Irish companies.
These thresholds determine your eligibility for simplified reporting.
How does micro company status benefit small businesses?
Micro companies enjoy significantly reduced administrative burden through simplified accounting requirements and abbreviated annual accounts.
This means less paperwork, lower compliance costs, and more time to focus on growing your business rather than managing complex financial reporting.
What accounting requirements apply to micro companies?
Micro companies can prepare simplified accounts with basic profit and loss information and a shortened balance sheet.
They're exempt from preparing a directors' report and can file abbreviated accounts publicly, keeping detailed financial information private whilst meeting legal obligations.
Where would I first see a Micro Company?
You'll most likely encounter the term "Micro Company" when filing your annual accounts with the relevant company registry, as you'll need to declare which size category your business falls into for accounting and reporting purposes.
Can a micro company lose its status?
Yes, if your business grows beyond the micro company thresholds for two consecutive years, you'll need to reclassify and meet the accounting requirements of a small company.
This typically means more detailed financial reporting and potentially appointing auditors.
What's the difference between micro companies and small companies?
Small companies have higher thresholds - typically around €15 million turnover, €7.5 million balance sheet total, and 50 employees.
Whilst both enjoy certain exemptions, micro companies have the most simplified requirements, representing the entry level of business regulation.
Do micro companies need audited accounts?
Generally, micro companies are exempt from statutory audit requirements, meaning they don't need to appoint external auditors to verify their accounts.
This exemption significantly reduces compliance costs and simplifies the annual reporting process for qualifying businesses.
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