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 and ex post supervision (article 32): competent authorities may inspect, audit and demand evidence proactively, without needing an indication of non-compliance. For infringing article 21 or 23, essential entities are subject to administrative fines with a maximum of at least EUR 10,000,000 or at least 2% of the total worldwide annual turnover in the preceding financial year of the undertaking to which the entity belongs, whichever is higher (article 34(4)). Only essential entities are exposed to the temporary management prohibition of article 32(5)(b).
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