Auditing obligations eased for micro and mid-sized social or societal impact companies

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Micro and mid-sized companies having a social or societal impact (société d’impact societal) – referred to here as “SIS” – with turnover or net assets below EUR 1,000,000 are no longer required to appoint an independent auditor (réviseur d’entreprises agréé) certifying their compliance with the transparency obligations under Luxembourg’s legal framework governing SIS.

On 29 June 2021, the Luxembourg legislator approved amendments to the legal framework that alleviate the auditing obligations for certain SIS. While maintaining the general transparency regime for all Luxembourg SIS, the approved amendments aim to reduce the costs faced by micro-SIS and mid-sized SIS by introducing thresholds below which SIS are not required to have their annual financial report prepared by an independent third party.

The new rules

The following thresholds have been created:

Entry into force

The adopted amendments will enter into force on the fourth day following the date of their publication in the Luxembourg Official Journal.


Luxembourg SIS are subject to a specific transparency regime, which includes drawing up an annual financial report certifying compliance with the following:

These transparency obligations previously applied to all Luxembourg SIS regardless of turnover, balance sheet size, number of employees or lifespan. The new rules take into consideration the size of the SIS and its turnover, and are a welcome alleviation of the auditing obligations for micro and mid-sized SIS that align the costs of meeting those obligations with the scale of their economic activity.


For further information, please do not hesitate to contact us.

For a description of Luxembourg’s legal framework for SIS, click here_

Download the press release

Luxembourg Newsflash – Auditing obligations eased for micro and mid-sized social or societal impact companies

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