The European Commission’s recent proposal for a directive to promote the use of digital tools and processes in EU company law has the potential to revolutionise the way businesses expand their operations across borders. In addition to improving transparency and trust in cross-border businesses, the directive can provide a major boost for corporate service providers and legal firms navigating the rapidly evolving digital economy.
A clear, stable legal framework for success in thedigital age
As an entrepreneur, I fully support the directive. I understand the importance of a clear, stable legal framework that encourages growth within the context of the digital economy. While companies are incorporated under domestic laws, the EU company law offers a set of rules that enhances legal certainty across the internal market, allowing businesses to operate more seamlessly throughout the EU.
This directive further digitalises the process, making life easier for corporate service providers and legal firms that help companies stay compliant.
Unlocking cost savings and efficiency for corporate services, the proposed directive aims to save resources by reducing administrative burdens, which is especially beneficial for small and medium-sized enterprises (SMEs).
Measures like the EU Company Certificate and the “once-only principle” could result in total annual savings of approximately €437 million. These cost-saving measures will enable SMEs to minimise the time and resources spent on repetitive paperwork, allowing them to focus more on core business activities, expanding their operations, and improving their products or services.
As an entrepreneur, I fully support the EU directive
Take, for example, a human resources consulting firm looking to expand its services to neighbouring countries. Instead of being bogged down in endless bureaucracy, the firm can now concentrate on crafting innovative talent management strategies tailored to the new market.
Innovative solutions for a seamless cross-border experience
Beyond the “once-only principle” and the EU Company Certificate, the proposed rules include providing basic company information in all EU languages for free and a multilingual standard model for a digital EU power of attorney. This will allow a person to represent a company in another member state, eliminating the need for apostilles or certified translations for company documents.
Impacting approximately 16 million limited liability companies and two million partnerships across the EU, this directive marks a significant step forward in adapting legal solutions for the contemporary digital landscape. As we embrace these changes, we can expect a more efficient, transparent and growth-oriented future for corporate services across Europe.
The EU directive is a game-changer for entrepreneurs like myself, who have always believed in the power of digital transformation. It provides a solid foundation for businesses to expand and scale within the EU while easing the administrative burden on SMEs. This not only promotes efficiency and cost savings but also encourages innovation and collaboration across borders. We are thrilled to be part of this exciting new era for corporate services in the digital age. Let’s see how these changes will positively impact the European business ecosystem.
Jacob Appel is CEO of Binderr, a European tech start-up that provides digital solutions for corporate services.