European Council supports new bill to establish companies to keep pace with the US and China

Brussels, October 23 (KUNA) -- The Council of the European Union on Friday endorsed a new legislative proposal aimed at facilitating the establishment of companies, cross-border business operations, and investment within the EU, particularly for innovative startups, as part of efforts to boost the bloc’s competitiveness and keep pace with the United States and China. In a statement, the Council said the new framework, known as the “European Company,” will allow businesses to choose between the national legal systems of member states and the new European system, which enables electronic company registration within two days at a cost not exceeding 100 euros ($112), with the ability to operate across the entire Single European Market. It added that the adopted position supports the main objectives of the proposal, while introducing amendments to simplify digital procedures and strengthen safeguards, including granting authorities the power to refuse company registration on grounds related to anti-money laundering, counter-terrorism financing, or other criminal activities, in accordance with national laws. The Council clarified that the amendments also aim to improve provisions on employee share options and ensure consistency of the new framework with the EU’s internal market freedoms, noting that the initiative falls under the “One Europe, One Market” roadmap, which seeks to facilitate business growth and enhance the competitiveness of the European economy. Member states and the European Parliament are set to negotiate the final version of the proposal before its adoption into law. (End) A.R.N. / M.A.A.