This Directive amends EU company law to expand and upgrade the use of digital tools and processes. Here are the key aspects:The Directive introduces several major changes to EU company law:
- Establishes mandatory preventive controls and legality checks for company documents and information before they are entered into business registers
- Creates an EU Company Certificate that will serve as standardized proof of company registration across the EU
- Introduces a digital EU power of attorney for cross-border company procedures
- Expands disclosure requirements to partnerships and makes more company information available through the Business Registers Interconnection System (BRIS)
- Requires disclosure of information about groups of companies and average number of employees
The main provisions include:
- Mandatory preventive administrative, judicial or notarial control of company formation documents
- Creation of standardized EU Company Certificate available in all EU languages
- Digital EU power of attorney template for cross-border procedures
- Expanded disclosure requirements for partnerships
- Requirements to keep company information up-to-date
- Interconnection between business registers, beneficial ownership registers and insolvency registers
- Reduced translation requirements and exemption from legalization formalities
The Directive aims to facilitate cross-border business operations while ensuring reliability of company information. Member States must transpose most provisions by July 31, 2027 and apply them from July 31, 2028. Some provisions on employee numbers and group information have a later deadline of August 2029.
