Mandatory audit of financial statements:
The current Trade Act requires the Corporation to meet for two consecutive years, 2 of the following 3 requirements, to appoint Auditor and deposit their annual accounts together with the corresponding audit report in the Commercial Register (LAC disp. Adic. 1, LSA art. 203)
The assets of the Company total exceeds € 2,850,000
The amount of turnover, exceeds € 5,700,000
The average number of workers employed during the financial year, exceeds 50 people
Important: companies not required to deposit the annual accounts with the audit report infringement committed two serious consequences: the closure of the commercial register and a penalty, which can reach 300,506.05 euros per year of non-compliance for companies exceeding 6 million euros in turnover.
Procedure: The General Shareholders Meeting has to appoint the Auditor, before the end of the year to be audited and then you must register this agreement in the commercial register.
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