Recital 7 Uniform size-cap as criterion for scope

Under Directive (EU) 2016/1148, Member States were responsible for identifying the entities means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; which met the criteria to qualify as operators of essential services. In order to eliminate the wide divergences among Member States in that regard and ensure legal certainty as regards the cybersecurity means cybersecurity as defined in Article 2, point (1), of Regulation (EU) 2019/881; risk-management measures and reporting obligations for all relevant entities means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations;, a uniform criterion should be established that determines the entities means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; falling within the scope of this Directive. That criterion should consist of the application of a size-cap rule, whereby all entities means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; which qualify as medium-sized enterprises means a financial entity that is not a small enterprise and employs fewer than 250 persons and has an annual turnover that does not exceed EUR 50 million and/or an annual balance sheet that does not exceed EUR 43 million; under Article 2 of the Annex to Commission Recommendation 2003/361/EC (⁵)Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36)., or exceed the ceilings for medium-sized enterprises means a financial entity that is not a small enterprise and employs fewer than 250 persons and has an annual turnover that does not exceed EUR 50 million and/or an annual balance sheet that does not exceed EUR 43 million; provided for in paragraph 1 of that Article, and which operate within the sectors and provide the types of service or carry out the activities covered by this Directive fall within its scope. Member States should also provide for certain small enterprises means a financial entity that employs 10 or more persons, but fewer than 50 persons, and has an annual turnover and/or annual balance sheet total that exceeds EUR 2 million, but does not exceed EUR 10 million; and microenterprises, ‘small enterprises’ and ‘medium-sized enterprises’ mean, respectively, microenterprises, small enterprises and medium-sized enterprises as defined in the Annex to Recommendation 2003/361/EC;, as defined in Article 2(2) and (3) of that Annex, which fulfil specific criteria that indicate a key role for society, the economy or for particular sectors or types of service to fall within the scope of this Directive.