Commission proposes more transparency and less red tape for companies to improve business environment in the EU
The European Commission adopted (29 March 2023) a proposal for a Directive making it easier for companies to expand the use of digital tools and processes in EU company law.
The proposal aims to facilitate cross-border companies’ operations and to increase business transparency and trust by making more information about companies publicly available at EU level.
It will also cut red tape for cross-border businesses, saving around €437 million of administrative burden per year, thanks to an EU Company Certificate or the application of the “once-only principle”. The proposal will contribute to further digitalisation of the single market and help companies, in particular, small and medium-sized ones to do business in the EU.
Cutting red tape and administrative burden
To cut red tape and alleviate the administrative burden for cross-border business, the proposed rules include:
Application of the “once-only principle” so that companies do not need to re-submit information when setting up a branch or a company in another Member State. The relevant information can be exchanged through the Business Registers Interconnection System (BRIS);
An EU Company Certificate, containing a basic set of information about companies, which will be available free of charge in all EU languages;
A multilingual standard model for a digital EU power of attorney which will authorise a person to represent the company in another Member State;
Removing formalities such as the need for an apostille or certified translations for company documents.
Improving transparency and trust in cross-border business
The proposal is updating the existing EU rules for companies (Directive (EU) 2017/1132) to adapt them further to the digital developments and new challenges, and to stimulate growth and competitiveness in the single market.