EU directive will mean less 'red tape' for small business

Finance ministers adopt new rules which will allow each EU member to exempt small businesses from publishing annual accounts.

EUROPEAN FINANCE MINISTERS have agreed to adopt new rules which aim to reduce the administrative burdens of setting up a small business.

The directive, adopted at their summit in Brussels yesterday, will allow small companies to be exempted from publishing annual accounts in a bid to lessen their bureaucratic costs and encourage small firms to take on more staff.

The rules will apply to companies who have an average of ten employees or less over the course of an accounting year, with a balance sheet of under €350,000 and a net turnover of €700,000.

To qualify for the exemption, companies must satisfy at least two of those criteria.

The new rules will not overrule national obligations to keep records showing business transactions, but should lessen the administrative costs of setting up a small business.

Ireland has not yet indicated whether it plans to sign up to the optional directive.

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