Art. 3(1)
Essential entity
An entity in an Annex I sector that exceeds the ceilings for medium-sized enterprises, plus specific categories listed regardless of size.
Essential entities are subject to ex ante supervision: competent authorities may inspect, audit and demand evidence proactively, without needing an indication of non-compliance. Maximum administrative fines are the higher of EUR 10,000,000 or 2% of total worldwide annual turnover. Only essential entities are exposed to the temporary management prohibition in article 32(6).
Related terms
- Important entity · Art. 3(2)
- Significant incident · Art. 23(3)
- Early warning · Art. 23(4)(a)
- Size-cap rule · Art. 2(1)
- CSIRT · Art. 10
- Competent authority · Art. 8