The European Union aims to make running businesses easier. The 28th legal regime is being prepared
According to the head of the European Commission, Ursula von der Leyen, entrepreneurs in the European Union currently encounter numerous administrative and legal barriers, and instead of one market, there are 27 legal systems and over 60 forms of companies, which hinders the development of companies and limits investments.
Von der Leyen assessed in a published statement that internal barriers in the EU are more severe than external trade tariffs.
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The “EU Inc.” project is to introduce a uniform legal framework for companies operating throughout the EU. According to the proposal, a company will be able to be set up within 48 hours, fully digitally, with costs below EUR 100 and without the requirement for a minimum share capital.
A key element is to be the “only once” principle, according to which enterprises will transfer data to public administration only once, and this information will be automatically shared between relevant institutions, including commercial registers and tax and social security authorities.
The European Union intends to make it easier to do business
The new solutions also assume full digitization of the functioning of companies, from registration to documentation management and organization of shareholders' meetings. The support is to be provided by the European Business Portfolio, enabling business operations and communication with administration in all Member States.
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The project also provides for mechanisms to protect companies and their employees against undesirable takeovers. The announced solutions also include simplified and fully digital bankruptcy procedures, including a fast track for start-ups, intended to reduce the risk of running a business.
Von der Leyen also emphasized that the proposal preserves applicable employee rights, including employee participation in company management.
