Medium-sized Corporation

Medium-sized corporations, as defined in § 267 HGB, represent a central size category for GmbH, AG, and other corporations. They meet at least two of the following thresholds: a balance sheet total exceeding €6 million up to €20 million, net revenue exceeding €12 million up to €40 million, or an average of 50 to 250 employees. As medium-sized GmbH or AG, companies enjoy significant disclosure reliefs but must prepare an audited annual financial statement with a condensed balance sheet and income statement summary. The management report can be more concise than that of large corporations, reducing effort and costs. Transparency is maintained as the audited financial statement must be electronically disclosed in the Federal Gazette and thus in the commercial registry within twelve months. The classification as 'medium-sized' is not explicitly stated there but can be inferred from the reduced disclosure obligations, such as the absence of a detailed profit and loss account. For tax advisors, controllers, and managing directors, correct classification is crucial to plan accounting, auditing, and disclosure in compliance with the Commercial Code. Those who slightly exceed the thresholds in balance sheet total, revenue, or employee numbers should promptly assess whether they ascend to the 'large corporation' category and thus must comply with stricter accounting regulations.