Faster and easier corporate changes in EU
With a recently adopted EU directive, the EU undertakes a major step toward digitising company law in the EU and simplifying doing business. The directive’s goal is to expand and modernise the use of digital tools to streamline procedures for establishing and managing corporations.
The key objectives of Directive (EU) 2025/25 of the European Parliament and of the Council are to simplify access to company data in a cross-border context, interconnect national registers, and ensure accurate, up-to-date, and reliable data. The directive harmonises the procedures for the ex-ante verification of documents and data, thereby increasing trust in business registers and extending the once-only principle: companies submitting data only once, and authorities in the EU exchanging it electronically among themselves. This is the beginning of the end of unnecessary paperwork.
Establishing a company or branch in another member state will be much easier. If a company has already submitted the necessary documents and data to the register of its home country, it will not need to submit them again. The exchange of information will take place automatically between interconnected registers, saving time and money. Notaries, administrative authorities, and other entities will obtain the necessary documents directly from the register or via the European e-Justice portal.
A harmonised EU Company Certificate (EUCC) is also being introduced, which will be recognised in all member states as sufficient proof of a company's incorporation and the information held in the register. Each company will be able to obtain this certificate in electronic form free of charge at least once a year, charges for additional copies may not exceed the administrative costs.
Another new feature is the EU digital power of attorney. A multilingual template will enable companies to effectively represent their interests in cross-border procedures without the need for apostilles or translations. The power of attorney will be authenticated using trust services and will be compatible with the EU Digital Identity Wallet (EUDI Wallet).
The directive also abolishes the requirement for the legalisation and apostilles for certified copies and extracts from registers or documents issued by the relevant authorities, which will significantly simplify cross-border operations and save costs and time.
The directive is already in force, and member states have until 31 July 2027 to adopt and publish legislation implementing most of its provisions. The new rules are to enter into effect one year later, on 31 July 2028.