Obligatory Audit of Annual Accounts:
The Commercial Law in force during this financial year obliges Companies that fulfil 2 of the 3 following requisites during two consecutive years to appoint an Accounts Auditor and to deposit their Annual Accounts in the Companies Registry together with the corresponding Audit Report (Law regarding Auditing 1st Additional Provision, Law regarding Corporations art. 203).
For the financial year 2007 (closed on 31.12.2007):
- That the total assets of the Company are above €2,373,998.
- That turnover is higher than €4,747,996.
- That the average number of workers employed during the year is above 50. .
For financial years closed from 2008 on:
- That the total assets of the Company are above €2,850,000.
- That turnover is higher than €5,700,000.
- That the average number of workers employed during the year is above 50.
Important: Companies that are obliged to deposit their annual accounts with the audit report, and do not do so, commit a breach with two serious consequences: closure of the registration in the companies registry and a sanction, which may reach 300,506.05 euros per year of breach for companies with a turnover higher than 6 million euros (Companies Registry Regulations art. 378, Law 30/1992, Royal Decree 1398/1993, Law regarding Corporations art. 221).
Procedimiento: Procedure: The General Shareholders’ Meeting must appoint an Auditor before the end of the year to be audited and, subsequently, this resolution must be registered in the Companies Registry. Click here to download templates for the appointment of auditors.
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