Brussels, 19 March 2024
A new digital European company as a tool towards digital transition
Question for written answer E-000834/2024 to the Commission
Rule 138
Eva Kaili (NI)
The digital transition is a primary goal of the EU, as the Commission adopted its communication on a competition policy towards the digital transition.
Although the digital world knows no borders, contradictory national company laws and registration systems fragment the EU, distort competition and disrupt sustainable development towards the digital transition.
On the other hand, the EU registry of trademarks maintained by the Alicante-based EU Intellectual Property Office sets an excellent example for an EU digital companies registry, where EU companies whose sole purpose is to enhance the digital transition in the EU could register. Such companies would provide digital services, set up digital platforms, produce digital infrastructure tools and enhance digital innovation.
Given the above:
- Will the Commission consider an initiative to establish a new digital (limited-liability) European company, which would be incorporated as a specialised EU company and be registered in an EU registry, as a tool towards the digital transition?
- Will the Commission consider granting special benefits to such companies (such as incentives, no limitations on their actions within the EU, or special treatment of their investments), thus paving the way towards digital transition?
- What is the timeframe, as this has been pending for years?
Submitted: 19.3.2024
Answer given by Vice-President Jourová on behalf of the European Commission
Brussels, 27 May 2024
The digital transition is among the Commission’s priorities and, in this context, the EU company law rules[1] have been extensively modernised in recent years contributing thus to the digital transition.
As part of EU company law, the business registers in the Member States are connected to the EU-level Business Registers Interconnection System (BRIS)[2], which provides online access to information about 16 million limited liability companies in the EU and allows for secure electronic exchanges of information between registers.
EU company law makes it now possible to set up a company, register a branch and submit documents to the business register fully online across the EU, and provides a harmonised digitalised procedure for cross-border corporate restructuring operations[3].
The upcoming rules to further expand the use of digital tools in company law, provisionally agreed by the co-legislators in March 2024[4], will significantly reduce administrative burden for EU companies by introducing ‘digital by default’ solutions (e.g., the ‘once-only-principle’, EU Company Certificate and Digital EU Power of Attorney).
EU company law is a horizontal policy that applies to all limited liability companies regardless of their sector of activity. The Commission does not have plans to establish a European digital limited liability company as a new EU legal form specifically for companies which provide digital services, set up digital platforms or infrastructures.
- [1] https://commission.europa.eu/business-economy-euro/doing-business-eu/company-law-and-corporate-governance_en
- [2] https://e-justice.europa.eu/content_business_registers_at_european_level-105-en.do Commission Implementing Regulation (EU) 2015/884 establishing technical specifications and procedures required for the system of interconnection of registers.
- [3] Directive (EU) 2019/1151 on the use of digital tools and processes in company law and Directive (EU) 2019/2121 on cross-border conversions, mergers and divisions.
- [4] https://www.consilium.europa.eu/en/press/press-releases/2024/03/13/council-and-parliament-strike-a-deal-to-expand-the-use-of-digital-tools-in-eu-company-law/