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Multinational enterprise groups in EuroGroups Register (EGR) - experimental statistics (egr)

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: INSEE

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The EuroGroups register (EGR) is the statistical business register of Eurostat and the EU Member States and European Free Trade Association (EFTA) countries for multinational enterprise groups. The purpose of the EGR is to offer to statistical users a tool for coordinating frame population, to derive consistent statistical output with an improved quality in measuring global activities of European enterprises part of multinational enterprise groups.

The EGR produces data in yearly cycles and covers microdata on the groups and their enterprises and legal units. The EGR aims to register all multinational enterprise groups that have enterprises in EU Member States or EFTA countries, including European and non-European groups.

The Member States, EFTA countries and Eurostat exchange data on multinational enterprise groups and on the units belonging to those groups for the purposes of the European framework for statistical business registers to ensure the quality of the multinational enterprise group’s information in the Union.

The EGR brings together microdata on multinational enterprise groups from the EU and the EFTA countries' national statistical institutes, in line with the requirements of the Regulation (EU) No 2152/2019, and from a commercial data source for data outside the EU and EFTA.

 

5 May 2025

Global group head

The global group head (GGH) of an enterprise group is the parent legal unit that is not controlled either directly or indirectly by any other legal unit. The subsidiary legal units of a subsidiary legal unit are considered to be subsidiaries of the parent legal unit.

Global decision centre

The global decision centre (GDC) of an enterprise group is the unit where the enterprise group level’s strategic decisions are taken. A group may have several decision-making centres or several units dedicated to a particular internal function, for example accounting or human resources. However, the decisions about the group are made only in the GDC. The GDC may be the GGH or another legal unit under the GGH.

Ultimate Controlling Institutional unit

The ultimate controlling institutional unit (UCI) of a foreign affiliate means the institutional unit higher up a foreign affiliate’s chain of control that is not controlled by another institutional unit.

 To date, France does not provide information if the UCI is a natural person or a family

Activity of unit

The concept used is consistent with the NSBR

Number of employees

number of employees (excluding temporary workers) present on December 31

Number of employees and self -employed persons

Number of employees and self -employed persons present on December 31

Since the 2022 EGR cycle, the number of self -employed persons has been included.

Net turnover

For all activities except for NACE 64, 65 and some activities of NACE 66 net turnover consists of all income arising during the reference period in the course of ordinary activities of the statistical unit, and is presented net of all price reductions, discounts and rebates granted by it.
Income is defined as increases in economic benefits during the reference period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
The inflows referred to are arising from contracts with customers and are realized through the satisfaction by the statistical unit of performance obligations as foreseen in said contracts. Usually, a performance obligation is represented by the sale (transfer) of goods or the rendering of services, however, the gross inflows can also contain revenues obtained as a yield on the use by others of the statistical unit’s assets.
Excluded from net turnover are:

  • all taxes, duties or levies linked directly to revenue;
  • any amounts collected on behalf of any principal, if the statistical unit is acting as an agent in its relationship with said principal;
  • all income not arising in the course of ordinary activities of the statistical unit. Usually, these types of income are classified as ‘Other (operating) income’, ‘Financial income’, ‘Extra-ordinary income’ or under a similar heading, depending on the respective set of generally accepted accounting standards used to prepare the financial statements.

Infra-annual statistics may not be able to take into account aspects such as annual price reductions, subsidies, rebates and discounts.
For the activities of NACE K6411, K6419 and K649 net turnover is defined as the value of output minus subsidies or government grants.
For the activities of NACE K642 and K643 net turnover can be approximated by the total operating costs, if net turnover is not available in the financial statements.
For the activities of NACE K6511, K6512 and K652 net turnover is defined as Gross premiums earned.
For the activities of NACE K653 the net turnover is defined as total pension contributions
For activities of NACE K66 for which net turnover is not available in the financial statements, net turnover is defined as the value of output minus subsidies or government grants. For activities of NACE K66 for which net turnover is available in the financial statements, the standard definition of net turnover applies.

Total assets

Total assets refers to the sum of the balance sheet items at the end of the accounting period. It covers economic assets, which are divided into financial and non-financial assets. In the case of a multinational group, the data on total assets are to be taken from the EGR.

  • not transmitted.

Principal activity

The principal (or main) activity is the activity that contributes most to the total value added of a unit under consideration. Ideally, the principal activity of the unit should be determined with reference to the value added to the goods and services produced, by applying the top-down method. The top-down method follows a hierarchical principle: the classification of the unit at the lowest level of the classification must be consistent with the classification of the unit at higher levels. The principal activity so identified does not necessarily account for 50 % or more of the unit’s total value added.
In the European Union the classification of principal activity is determined by reference to NACE Rev. 2, first at the highest level of classification and then at more detailed levels (top-down method).

  • In France, the value added is approximated by the turnover for determining the principal activity of legal units and enterprises.-

The statistical units maintained in the EGR are defined in accordance with the Regulation (EEC) No 696/93 on the statistical units for the observation and analysis of the production system in the Community.

The EGR frame contains the following units: Legal units, Enterprises and Multinational enterprise groups.

Legal units include:

  • legal persons whose existence is recognized by law independently of the individuals or institutions which may own them or are members of them,
  • natural persons who are engaged in an economic activity in their own right.

The legal unit always forms, either by itself or sometimes in combination with other legal units, the legal basis for the statistical unit known as the 'enterprise'.

Enterprise

The enterprise is the smallest combination of legal units that is an organizational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. An enterprise may be a sole legal unit.

Multinational enterprise group

A multinational enterprise group is an enterprise group that has at least two enterprises or legal units located in different countries.  In business statistics also term ‘global enterprise group’ is used.

The data transmitted to the EGR during the cycle is made of the following datasets.

 

The data set with information on all incorporated resident legal units for the EGR Identification Service.

ISRLE file including 40,4% population of resident legal units is sent to EGR for identification.

Sole proprietorships are excluded.

Resident branches of foreign legal units are included.

 

The data set with information on foreign legal units for the EGR Identification Service.

ISNORLE file including full population of foreign legal units recorded in the national statistical business register is sent to EGR for identification.

 

The data set with information on legal units.

LEU file including all resident legal units belonging to a global enterprise group is sent to EGR for processing.

 

The data set with information on relationships of ownership and control.

REL file including part of the relationships between legal units is sent to EGR for processing:

  • two resident legal units (full)
  • one resident and one foreign legal unit (88% because not all the foreign legal units are identified in the EGR-IS)
  • two foreign legal units from non EU+EFTA countries (none because no information).

Relationships in the REL are:

  • control relationships (>50%) (full)
  • minority relationships (<50%) (part: only >=10%)

 

The data set with information on enterprises.

ENT file including all enterprises made of legal units sent in LEU files is sent to EGR for processing.

 

The Data set with information on links between enterprises and legal units.

LEL file including full links between enterprise (ENT) and legal units (LEU) is sent to EGR for processing.

 

The Data set with information on enterprise groups of which country is the GDC country for the EuroGroups Register.

GEG file including full groups data is sent to the EGR for processing.

The groups’ variables are updated after receiving the preliminary frame:

  • GGH.
  • GDC.

France including ultraperipherical regions (Guadeloupe, Saint-Martin, Martinique, French Guiana, Reunion, Mayotte), as defined in the NUTS classification.

The reference period for data sent to the EGR reflects the picture of 31 December as at the given reference year.

Data transmitted to EGR during the EGR 2023 cycle includes data for the 2023 reference year. The identification refers to the 2023 reference year. The economic variables (number of employees, self -employed persons, turnover and economic activity) refer to the 2022 reference year.

The accuracy of the data transmitted to the EGR is:

Units Assessment
Legal Units Very good
Relationships between legal units Very good
Enterprises characteristics Very good
Enterprises perimeters Good

Mulitnational entreprise group

(with Global decision centre in my country)

Satisfactory

 
This accuracy assessment is based on:

  • use of the national statistical business register
  • use of tax and administrative data sources
  • interviews with the consolidators and accountants of major groups
  • expertise of groups with more than 1,000 employees in France

 

The main issues regarding accuracy of the data and issue importance are as follows:

Units Issue Importance
Legal units employment criteria the number of employees corresponds to the number of employees at 31/12 and not to the average number of employees
Relationships between legal units over-coverage very few duplications of financial links with legal units in non-OECD countries due to problems with identifiers
Entreprises characteristics employment criteria the number of employees corresponds to the number of employees at 31/12 and not to the average number of employees
Entreprises perimeters uncovered NACE A and K sectors for the nace A and K sectors, the enterprise corresponds to the legal unit.

Multinational entreprise group

(with Global decision centre in my country)

 missing data No data source currently implemented in the national information system for worldwide characteristics of MNEs required as conditional variables.

The actions will be taken from 2025 to improve accuracy of the data are as follows:

  • the average number of employees will be available and calculated from administrative data
  • a new calculation of the group APE will be implemented
  • data on groups will be enhanced using the Ofats survey (global framework)
  • the country of residence of the UCI, in the case of an individual or a family, will be determined by acquiring the information from a private source.

Another action is being considered:
to improve the IT application of the French register of groups (named LIFI) in order that the register managers can enter the country of residence of the UCI and worldwide data on employment and turnover found in activity reports.

 

The economic variables on employment are recorded in absolute figures.

The net turnover for enterprises is recorded in euro currency.

The net turnover is recorded in millions in euro currency.

No imputation

The data are based on a multisource process including administrative and private data.

The data transmitted to the EGR by the national statistical institutes are micro data and are not disseminated. Only aggregates are disseminated in Eurobase every year.

The EGR process refers to a reference year T and is run yearly over a period of 11 months, between May T+1 and March T+2.

Geographical comparability is guaranteed

Since the 2021 EGR cycle, data transmitted to EGR, except the economic variables (see 5. Reference Period), has included data for the same reference year. Before, the files sent for the (Y) EGR cycle were built according to (Y-1) data.