Annex III · Scope and dimension
Enterprise and size categories
Annex III defines business by economic activity, irrespective of legal form, and sets the micro, small and medium-sized enterprise thresholds used in various rules of the RJCS.
Article 2 of Annex III
Three categories of SMEs.
Person criteria and financial limits must be read together.
Microenterprise
Less than 10 peopleAnnual turnover or annual balance sheet not exceeding 2 M€
Small enterprise
Less than 50 peopleAnnual turnover or annual balance sheet not exceeding 10 M€
Average company
Less than 250 peopleAnnual turnover up to 50 M€ or annual balance sheet up to 43 M€
Method
How to use this attachment.
- 01
Confirm whether there is economic activity
- 02
Clear the number of people
- 03
Collect turnover and balance sheet
- 04
Check relevant business relationships
- 05
Crossing the dimension with sector and Article 6
Warning
Do not conclude by name or dimension only.
- The legal form itself does not dispel the concept of a company.
- The number of workers should not be used alone.
- There are qualifications and types of entity independent of size.
Frequently Asked Questions
Two important distinctions.
Does having less than 250 people always mean being an SME?
It's not enough to look at people. The financial thresholds and rules for determining the category should also be checked.
Can an association be a company for this purpose?
Annex III considers an undertaking to be any entity engaged in economic activity, irrespective of the legal form, including associations exercising it on a regular basis.
Primary source
Decree-Law No. 125/2025 of 4 December
Information guide. The presence in a sector or category of size shall not be interpreted in isolation; confirm the types of entity, Articles 3, 6 and 7 and the qualification procedure.