Glossary
Essential Entity
A category of entities subject to NIS 2's strictest obligations, operating in highly critical sectors and exceeding certain size thresholds.
An Essential Entity is an organisation subject to the most stringent requirements of the NIS 2 directive. It is distinguished from an Important Entity by belonging to a sector deemed "highly critical" and by exceeding specific size thresholds.
Identification criteria
An entity is considered essential if it:
- Belongs to one of the 11 highly critical sectors (energy, transport, health, drinking water, digital infrastructure, banking, financial markets, ICT service management, public administration, space, waste water)
- AND exceeds medium-enterprise thresholds: more than 250 employees or more than €50M turnover (or €43M balance sheet total)
Some entities are automatically essential regardless of size (e.g. electronic communications network operators, central public administrations).
Consequences
Essential entities are subject to:
- Proactive supervision (the authority can launch inspections without a prior incident)
- Stronger penalties: up to €10M or 2% of annual worldwide turnover
- The full set of NIS 2 obligations (risk management, notification, supply chain, etc.)