# Commission Decision of 18 December 2012 on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities and under the Seventh Framework Programme of the European Atomic Energy Community for nuclear research and training activities (Text with EEA relevance) (2012/838/EU, Euratom) (revoked), Division 3.5.1: Purpose

Extent: E+W+S+N.I.
Status: repealed

In order to be financially viable, a legal entity must be:
liquid: capable of covering its short-term commitments;
solvent: capable of covering its medium and long-term commitments;
profitable: generating profits, or at least with self-financing capacity.
As a consequence, the liquidity, the financial autonomy, the profitability and the solvency of the legal entity must be assessed in the financial analysis.
The validation services provide a user-friendly electronic tool to applicants to carry out their financial viability check for their own information.
The following ratios, noteworthy value and thresholds apply for legal persons. Specific criteria will be used for natural persons (see section 3.5.4).

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Source: https://www.legislation.gov.uk/eudn/2012/838/annex/division/2/division/3/division/3.5/division/3.5.1 (the official version)
Page: https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-3/division-3.5/division-3.5.1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.