New category: ‘small mid-caps’
According to Bankier.pl portal, 1 of the key elements of the Omnibus IV package is the proposal to introduce a fresh category of companies – tiny mid-caps, or tiny companies with average capitalisation. They are intended to fill a gap between tiny and medium-sized enterprises (SMEs) and large entities.
Criteria for tiny mid-caps:
- employment: from 250 to 750 employees,
- annual turnover: up to EUR 150 million, or
- Total assets: up to EUR 129 million
Currently, after exceeding the threshold of 250 employees, the company is automatically considered to be large – and this entails a crucial increase in regulatory requirements, peculiarly in reporting and compliance with EU legislation. The European Commission wants to remove the alleged regulatory cliff that can discourage companies from further development.
Objective: little bureaucracy, more competitiveness
The fresh classification is intended to let companies to decision more smoothly between categories without rapidly expanding administrative responsibilities. The change is part of the European Commission's plan to reduce administrative burdens on companies in the EU by 25% by 2029.
What's next?
The Omnibus IV package will now be further legislative work in the European Parliament and the EU Council. If adopted, associate States will gotta implement them in national legal order.
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