The European Commission’s 28th regime – or EU Inc proposal published on 18 March, put forward a common company law framework that offers an innovative solution to tackle the existing fragmentation in the EU’s Single Market. If designed effectively, it can encourage an environment for businesses to operate with greater ease by reducing barriers to cross-border business mobility and investment.
Since the proposal’s “overall objectives are to provide better conditions for starting a business and better opportunities for growth and scaling up in the EU, and to encourage more investment into EU companies, particularly in their early and growth stages…” we believe that the EU Inc company framework should be accessible to all businesses irrespective of their size.
The digital-by- default solutions and the range of corporate rules that are harmonised within this proposal including setting up a business, the operation of companies and liquidation and insolvency procedures could be helpful to all businesses choosing to opt into the system. Moreover, it is vital that the once-only principle is adhered to.
While we continue to assess the proposal further, we thank the Commission for their efforts to simplify the business environment.