The Riigikogu supports simplification of setting up of companies in the European Union
At its today’s sitting, the European Union Affairs Committee of the Riigikogu (Parliament of Estonia) approved Estonia’s positions on the proposal aiming to simplify setting up companies in the European Union and reduce the administrative burden and costs relating to cross-border procedures.
According to Chairman of the European Union Affairs Committee Peeter Tali, the proposal will enable to establish EU Inc. companies quickly and digitally throughout the European Union. “The purpose of the proposal is to make operating in the European Union more attractive to businesses, so that the companies set up and providing services here would not move out of the European Union, as this would also lead to a loss of innovation and capital,” Tali noted.
“We support an EU-wide company form, but on the condition that the administrative burden on businesses will be reduced and no unreasonable obligations will be imposed on the public sector,” Tali said. “We support a solution according to which a company can be established within 48 hours, digitally and at low cost, based on model articles of association. However, the provisions that threaten legal certainty, create unjustified restrictions, and increase regulatory fragmentation must be removed from the proposal.”
The positions note that Estonia does not support the provisions on insolvency law in the regulation or addressing tax law issues in this legislative act, as these topics go beyond the scope of the objective of harmonising company law in the internal market, are problematic in terms of Treaty-based competence, and require separate and more thorough consideration.
According to the explanatory memorandum, it is intended to adopt the proposed regulation at the end of the year. Estonia supports the fast time framework of the proposed regulation but points out that speed must not increase the administrative burden on economic operators or impose disproportionate additional costs on the public sector.
The positions of the Government regarding the Regulation of the European Parliament and the Council on the 28th Regime Corporate Legal Framework – “EU Inc.” were presented at the sitting of the European Union Affairs Committee by Minister of Justice and Digital Affairs Liisa Pakosta and Minister of Finance Jürgen Ligi. The European Union Affairs Committee approved the positions in an amended form by consensus, taking into account the opinion of the Legal Affairs Committee.
Riigikogu Press Service
Merilin Kruuse
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