FREQUENTLY ASKED QUESTIONS/ACCOUNTING - When is a statutory auditor mandatory/


When is a statutory auditor mandatory?

This is mandatory if one shareholder has the majority of the capital and carries out one of the following activities: credit establishment, payment establishment, insurance or reinsurance, pension institution, mutual insurance, etc.

It is also mandatory if one of the following criteria are met:

(1) Financial - if two of the three conditions below are met:

  • balance sheet: €4M+
  • gross revenues: €8M+
  • employees: 50+

These financial thresholds are updated as of August 2019, in accordance with the recently enforced PACTE Law.

Note that, for example, when you create the company, the Statutory auditor is not appointed (even if the conditions are met during the first accounting year), it becomes mandatory for the following accounting year.

(2) Capital ownership - if:

  • one of the shareholders is a moral person (a distinct company) holding the majority of the voting rights (in alf's documents, one share = 1 vote, so if one shareholder is a company and holds more than 50% of the voting rights) or
  • one of the shareholders is an individual and has a dominant influence within the new company (ie the shareholder of the new company are a mix of companies and individuals, but one individual holds more than 40% of the voting rights directly or indirectly within the new company).

alf adapts the questions depending on your situation, helping you to determine whether or not you need to appoint a Statutory auditor. If you are not familiar with these situations, please contact us, we can connect you to our partners.

alf collects and prepares all of the needed incorporation documents; facilitates discussions and procedures to help you save time, but does not take any commission on the Statutory auditor's fees. To know more, please visit our website.