Directive (EU) 2026/470 generally uses more than EUR 1.5 billion for a third-country company or relevant ultimate-parent group.
There is no employee threshold for the main third-country route. A separate franchise or licensing route remains, using Union royalties and Union turnover. Companies remaining in scope apply from 26 July 2029.
Build the scope file from traceable Union-turnover, royalty, and group data, then appoint an if the company is in scope. The main third-country test uses the financial year preceding the last financial year. Do not use the superseded EUR 450 million or EUR 900 million general thresholds, the former lower franchise thresholds, or a 2028 first-wave date.
A company formed under third-country law enters the main CSDDD route when it generated more than EUR 1.5 billion in the financial year preceding the last financial year. There is no employee threshold for this route. The same Union-turnover test applies at consolidated level to a relevant third-country ultimate parent.
The route applies only when the condition is met for and ceases only when it has not been met for each of the last two relevant financial years. Article 2 separately excludes alternative investment funds () and undertakings for collective investment in transferable securities (); it does not automatically exclude their managers or every regulated financial undertaking.
Sources (2)
Current third-country scope source.
Current source for the two-year entry and exit rule and the AIF and UCITS exclusions.
A scope conclusion should let another reviewer reproduce the Union-turnover calculation and identify the financial periods, accounting framework, group perimeter, and Member State allocation used. Record an out-of-scope result with the same care as an in-scope result.
Reassess after acquisitions, disposals, new Union branches, franchise or licence changes, accounting-framework changes, material currency movements, or turnover changes that could start or end the two-year sequence. Track national transposition separately because procedures and sanctions come from the applicable Member State law.
Sources (1)
Current source for the two-consecutive-financial-years rule, third-country scope, exclusions, authorised representative, and competent supervisory authority.
Connect turnover, group, representation, competent-authority, timing, and reassessment evidence.
Connect the CSDDD decision to cited sources, owners, evidence, and reviewable implementation work.
Return to current scope, dates, due diligence, reporting, and enforcement guidance.
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A third-country company generally needs more than EUR 1.5 billion net turnover in the EU under Directive (EU) 2026/470; learn the evidence and timing.