Exemption of Micro and Small Enterprises from Some Audit and Disclosure Requirements

According to the Law dated 3 May 2019, the Civil Code was amended to exempt micro and small limited liability companies and open joint-stock companies respectively from the mandatory annual audit requirement and the requirement to publicly disclose financial reports annually.

Before the amendment to the Civil Code, all limited liability companies were required to annually pass external auditing. In addition, all open joint-stock companies were required to publish their financial reports annually. 

The failure to follow these requirements might have caused some administrative penalties. 

Now these requirements apply only to the entities that do not qualify as small or micro enterprises. 

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