NIS2
Am I an essential or important entity under NIS2?
The NIS2 distinction between essential and important entities affects your supervision, fines, and deadlines. Answer 6 questions to find out which you are.
Last updated: 1 May 2025
Do Essential vs important entity need to comply with NIS2?
The NIS2 distinction between essential and important entities affects your supervision, fines, and deadlines. Answer 6 questions to find out which you are. If yes: Essential entity — strictest NIS2 obligations apply. If not: Below size threshold in Annex II — generally exempt. Us…
- Yes path: Essential entity — strictest NIS2 obligations apply
- No path: Below size threshold in Annex II — generally exempt
- Use the step-by-step decision tree below for your exact situation
NIS2 · Question 1
Does your company operate primarily in an Annex I 'highly critical' sector?
Annex I sectors: energy (electricity, oil, gas, hydrogen), transport (air, rail, water, road), banking, financial market infrastructure, health, drinking water, waste water, digital infrastructure (IXPs, DNS, TLD, cloud, data centres, CDNs, electronic communications), ICT service management (B2B managed services), public administration, and space.
For informational purposes only. Consult qualified legal counsel before making compliance decisions.
Decision tree questions
Does your company operate primarily in an Annex I 'highly critical' sector?
Annex I sectors: energy (electricity, oil, gas, hydrogen), transport (air, rail, water, road), banking, financial market infrastructure, health, drinking water, waste water, digital infrastructure (IXPs, DNS, TLD, cloud, data centres, CDNs, electronic communications), ICT service management (B2B managed services), public administration, and space.
- Yes: Continue to: Does your company have more than 250 employees OR annual turnover exceeding €50M AND balance sheet exceeding €43M?
- No: Continue to: Does your company operate in an Annex II sector: postal/courier, waste management, chemicals, food, manufacturing (medical devices, electronics, machinery, motor vehicles), digital providers (marketplaces, search engines, social networks), or research?
Does your company have more than 250 employees OR annual turnover exceeding €50M AND balance sheet exceeding €43M?
This is the EU definition of 'large enterprise'. Both conditions on the OR branch matter: you need either >250 employees, OR (turnover >€50M AND balance sheet >€43M).
- Yes: Essential entity — strictest NIS2 obligations apply
- No: Continue to: Does your company have at least 50 employees OR annual turnover and balance sheet of at least €10M?
Does your company have at least 50 employees OR annual turnover and balance sheet of at least €10M?
Medium enterprise: 50–250 employees, or turnover/balance sheet €10M–€50M. Medium enterprises in Annex I are still essential entities.
- Yes: Essential entity (medium-size in Annex I) — full obligations
- No: Small company in Annex I — may be exempt, but verify
Does your company operate in an Annex II sector: postal/courier, waste management, chemicals, food, manufacturing (medical devices, electronics, machinery, motor vehicles), digital providers (marketplaces, search engines, social networks), or research?
Annex II covers sectors that are important but not 'highly critical'. Most tech companies, manufacturers, and B2C digital platforms fall here.
- Yes: Continue to: Does your company have at least 50 employees OR annual turnover and balance sheet of at least €10M?
- No: Outside NIS2 sector scope — not essential or important
Does your company have at least 50 employees OR annual turnover and balance sheet of at least €10M?
The same size threshold applies for Annex II entities. Below this, you are generally exempt.
- Yes: Important entity — reactive supervision, same core obligations
- No: Below size threshold in Annex II — generally exempt