New Criteria for Classifying Companies by Size

In the financial year beginning in 2024, companies will, for the first time, be classified by size based on new criteria established under the Amendments to the Companies Act (ZGD-1M, Official Gazette of the Republic of Slovenia No. 102, dated December 3, 2024).

Micro, Small, Medium, and Large Companies

Under the new rules, a company is classified as micro, small, medium, or large if, based on the data for the last two consecutive financial years at the balance sheet date, it either exceeds or ceases to exceed two of the following prescribed thresholds:

Micro company:

the average number of employees during the financial year does not exceed 10,
net revenue from sales does not exceed EUR 900,000 (previously EUR 700,000), and
total assets do not exceed EUR 450,000 (previously EUR 350,000).

Small company:

the average number of employees during the financial year does not exceed 50,
net revenue from sales does not exceed EUR 10,000,000 (previously EUR 8,000,000), and
total assets do not exceed EUR 5,000,000 (previously EUR 4,000,000).

Medium-sized company:

the average number of employees during the financial year does not exceed 250,
net revenue from sales does not exceed EUR 50,000,000 (previously EUR 40,000,000), and
total assets do not exceed EUR 25,000,000 (previously EUR 20,000,000).

Large company:

A company is classified as large if it does not meet the criteria for classification as a micro, small, or medium-sized company.

Additional Definition of Large Companies

Regardless of the above criteria, a company is also classified as large if it is:

a public interest entity,
a stock exchange,
a company required to prepare consolidated financial statements.

Definition of Public Interest Entities

Public interest entities include:

a company whose securities are traded on a regulated securities market,
a credit institution as defined by the Banking Act,
an insurance company as defined by the Insurance Act,
a pension company as defined by the Pension Companies Act, and
a large company subject to a mandatory audit, in which the state or self-governing local communities jointly or independently, directly or indirectly, hold a majority stake (this no longer applies to medium-sized companies that meet these conditions, as was previously the case).

Audit Obligation

The change in criteria will also affect which companies are required to have their annual reports audited. The obligation to audit applies to large and medium-sized capital companies and dual companies.