Glossary:Enterprise group

An enterprise group is an association of enterprises bound together by legal and/or financial links and controlled by the group head. A group of enterprises can have more than one decision-making centre, especially for policy decisions on production, sales and profits. It may centralize certain aspects of financial management and taxation. It constitutes an economic entity which is empowered to make choices, particularly concerning the units which it comprises.

The group head is a parent legal unit which is not controlled either directly or indirectly by any other legal unit. The subsidiary enterprises of a subsidiary enterprise are considered to be subsidiaries of the parent enterprise.

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, such as general partnerships, private limited partnerships, limited liability companies, incorporated companies etc. Legal units as well include natural persons who are engaged in an economic activity in their own right, such as the owner and operator of a shop or a garage, a lawyer or a self-employed handicrafts-man.

A multinational enterprise group is defined as an enterprise group composed of at least two enterprises or legal units located in different countries.

Related concepts

Source

  • Regulation 696/1993 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community
  • Notice of intention of the Business Statistics Directors Groups and the Directors of Macroeconomic Statistics on the consistent implementation of Council Regulation (EC) No 696/93 on statistical units