MEPs approved easier access to company information across the EU

New rules, already agreed on with member states, aim to ensure that national business registers contain reliable information about companies to be used in cross-border situations and establishes EU Company Certificate and digital EU power of attorney to reduce formalities.

Reliable data to be accessible through business registers’ interconnection

According to the text, new measures should facilitate companies’ expansion, including setting up branches in other EU countries, reduce costs and red tape by saving 437 million euro annually and boost transparency.

To ensure data are available and up-to-date in national business registers, member states will perform preventive controls of company’s documents. The information will be easily accessible across the EU through business registers’ interconnections. The companies will not be required to submit the same information more than once but non-compliant companies, including those registering the data late, will face penalties. Member states will be able to refuse information from a register in another EU country if they suspect fraud.

Less red tape with EU Company Certificate and digital EU power of attorney

New measures should also reduce formalities in cross-border context and benefit all companies, particularly micro, small and medium-sized enterprises (SMEs), by not requiring apostille or translation of official company’s documents. Instead, a free of charge EU Company Certificate could be issued in both paper and electronic form. Its template together with template of digital EU power of attorney will be accessible on the E-justice portal in all official EU languages.

Quote

Following the plenary vote, rapporteur Emil Radev (EPP, BG) said:

„Today the European Parliament voted to cut red tape for EU companies. With new digital tools such as EU Company certificate and the standard model of EU digital power of attorney, we will reduce costs and administrative burden for them. Introducing harmonised preventive control of documents while registering companies will enhance trust in commercial registers and thus will make the cross border expansion of businesses easier.”

Next steps

Provisional agreement was adopted with 550 votes for, 3 against and 19 abstentions. Following its formal adoption by the Council, it will enter into force and start to apply 42 months later.

Background

The European Commission submitted its proposal for amended directive in March 2023 with the aim to contribute to a more integrated and digitalised single market. New rules should boost transparency, digitalise more cross-border public services and foster legal certainty in business environment.