Brussels, 16 December 2024
The EU Council has today adopted a directive expanding and upgrading the use of digital tools and processes in company law. The new directive will make company data more easily available, enhance trust and transparency in companies across member states, create more connected public administrations and reduce red tape in cross-border situations. This is the last step in the decision-making procedure.
The directive adopted today will use the great potential of digital tools to facilitate the life of entrepreneurs, reduce administrative burdens and make cross-border business faster, easier and more transparent.
Online tools for company law
The new rules facilitate the sharing of company data (e.g. the disclosure of the particulars of limited partners) through the Business Registers Interconnection System (BRIS). The directive also creates a multilingual digital template (the Digital EU Power of Attorney) to remove formalities such as the need for an apostille on company documents and unnecessary translations in cross‑border procedures. It also encourages the use of the ‘once-only principle’ in cases where companies set up subsidiaries and branches in another member state. In order to facilitate formalities in cross-border situations, the directive proposes a multilingual EU company certificate, which may be free of charge for certain undertakings (for instance, partnerships or limited liability companies). The text adopted today also provides the possibility of including cooperatives in the company law directive in the future.
Next steps
Following the Council’s approval, the legislative act has been adopted. After being signed by the President of the European Parliament and the President of the Council, the directive will be published in the Official Journal of the European Union and will enter into force 20 days later.
Member states have 30 months to implement the provisions necessary to comply with this directive, which will apply 42 months after its entry into force.
Background
The directive adopted today will contribute to the objectives set out in the following communications: ‘2030 Digital Compass and Digitalisation of Justice in the European Union’, ‘Updating the 2020 New Industrial Strategy’ and ‘SME Strategy for a sustainable and digital Europe’.
This directive updates and supplements the 2019 Directive on the use of digital tools and processes in company law.
- Commission’s proposal
- Council’s negotiating mandate
- Council and Parliament strike a deal to expand the use of digital tools in EU company law (press release, 13 March 2024)
- Single market (background information)