Single undertaking is a concept from the de minimis aid rules, according to which the de minimis aid limit is assessed not for an individual company but for the entire group of connected entities. Under Commission Regulation (EU) 2023/2831, a single undertaking is formed by all entities between which a control relationship exists – one entity owns the majority of voting rights in another, can appoint the majority of its governing bodies, exercises a dominant influence over it, or controls it on the basis of a contract. The connection is also assessed in a chain through further companies. De minimis aid received by all companies in the group is therefore counted towards the joint limit of EUR 300,000 over three years, which can come as an unpleasant surprise to entrepreneurs with several companies. Conversely, a connection solely through a natural person is not taken into account for de minimis purposes if the companies operate in different markets. Before submitting an application, therefore, it is necessary to map the ownership structure and check the drawdown of the whole group in the central IS SEMP register.
See also: De minimis aid scheme.
