Enterprise categories and size thresholds
The Accounting Act outlines four different enterprise categories. Most limited liability companies fall under the categories of small enterprises or micro-enterprises.
The Accounting Act outlines multiple enterprise categories with corresponding size thresholds
| Category: | Size thresholds: |
| Micro-enterprise |
Below two of the following three thresholds for the enterprise or group:
|
| Small enterprises/groups |
Below two of the following three thresholds for the enterprise or group:
|
| Medium-sized enterprises/groups |
Below two of the following three thresholds for the enterprise or group:
|
| Large enterprises/groups |
Exceeding two of the following three thresholds for the enterprise or group:
|
Groups
Parent companies within a group must assess the thresholds on a consolidated basis.
The Accounting Act on enterprise categories (in Norwegian only)
Additional information for small enterprises and miro-enterprises
Increased thresholds for small enterprises apply from the financial year 2024. This category covers entities subject to the obligation to prepare accounts that, for two consecutive years, meet at least two of the following three criteria:
- Sales revenue is less than NOK 168 million.
- Balance sheet total (sum of assets) is less than NOK 84 million.
- Fewer than 50 employees, measured by the average number of full-time equivalents during the financial year.
It is the value at the end of the financial year (normally 31 December) which is used as the basis, but the figures must exceed the threshold for two consecutive years for the classification to change. The category changes starting from the second year. For newly established enterprises, the thresholds at the end of the first financial year are used as the basis.
For example, small enterprises are subject to simplified requirements concerning notes and are not required to prepare an annual report or cash flow analysis either. A separate standard has been prepared for small enterprises (NRS 8).
The Accounting Act on small enterprises (in Norwegian only)
The Accounting Act on enterprise categories (in Norwegian only)
