Determining the status of the company in the SME definition context
Purpose of the service
The correct determination of the size of the company and its affiliation to the sector of micro, small and medium-sized enterprises (SME) is crucial, considering the fact that the vast majority of European and national aid is dedicated to SME sector. The procedure of The procedure of determining the status of the company is very complicated and the existing SME definition contained in „Appendix No 1 to Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation)” is imprecise and does not specify how to deal with more complex cases.
Who is the service designed for?
The service is addressed to companies that want to apply for support from public funds. Recently, institutions responsible for the allocation of public funds tightened the verification procedures for SME beneficiaries of aid, or applying for such aid. Recently, the institutions responsible for the allocation of public funds tightened the procedures for verifying the status of the SME beneficiaries of public funds or applying for such support. While the calculation of the number of employees in the company, its turnover and balance sheet total is not problematic, much larger problems arise if it is necessary to resolve whether the company is a partner or related to another enterprise (if this is the case, the company’s relations with other entities should be considered in determining the company’s size). Incorrect determination of the status of the company may lead to financial support loss or the necessity of its return. STRATEGOR has wide experience in determining the status of SME in companies. Based on available legal regulations, instructions, guidelines, judgments of Polish and European courts, and most of all, reviews of public institutions (mainly the OCCP and the European Commission) on matters relating to our customers, we are able to provide you with a comprehensive service in determining the status of SMEs, including the following elements:
- support in the calculation of the employment level in the enterprise, verifying the content of the civil agreements in terms of taking them into account when counting the annual average employment in the enterprise;
- identifying capital and personal relations with other companies;
- analysis of highly complex matrix of links between companies within large corporate groups;
- analysis of complex and unusual types of links between companies (i.e. through investment funds, public entities, business angel networks, foreign entities, etc.);
- analysis of possible personal connections between companies (shareholders, supervisory board, management, executives);
- the analysis of the legal situation of the company in SMEs definition context, in the case of ownership changes, acquisitions, privatizations, etc.;
- analysis of contractor, business and economic relation between enterprises in a dominant influence context;
- analysis of the markets in which the companies operate, in order to qualify them as a relevant market or adjacent market;
- support in clarifying the issues in dispute, regarding the SME status, representing our clients in disputes with the institutions providing aid;
- obtaining a binding opinions on the SME status, issued by the Office of Competition and Consumer Protection.
When to contact us?
Every moment is right to determine the status of your company. Better yet, contact our advisors in the planning phase, before starting the process of applying for funding.