A micro company is the smallest category of business entity, defined by specific thresholds for turnover, balance sheet total, and employee numbers that qualify it for simplified accounting and reporting requirements.
A micro company must meet at least two of three criteria: annual turnover not exceeding €900,000, balance sheet total not exceeding €450,000, and average number of employees not exceeding 10. These are the 2025 figures for Irish companies.
These thresholds determine your eligibility for simplified reporting.
Micro companies enjoy significantly reduced administrative burden through simplified accounting requirements and abbreviated annual accounts.
This means less paperwork, lower compliance costs, and more time to focus on growing your business rather than managing complex financial reporting.
Micro companies can prepare simplified accounts with basic profit and loss information and a shortened balance sheet.
They're exempt from preparing a directors' report and can file abbreviated accounts publicly, keeping detailed financial information private whilst meeting legal obligations.
Yes, if your business grows beyond the micro company thresholds for two consecutive years, you'll need to reclassify and meet the accounting requirements of a small company.
This typically means more detailed financial reporting and potentially appointing auditors.
Small companies have higher thresholds - typically around €15 million turnover, €7.5 million balance sheet total, and 50 employees.
Whilst both enjoy certain exemptions, micro companies have the most simplified requirements, representing the entry level of business regulation.
Generally, micro companies are exempt from statutory audit requirements, meaning they don't need to appoint external auditors to verify their accounts.
This exemption significantly reduces compliance costs and simplifies the annual reporting process for qualifying businesses.
