European businesses call for simpler cross-border expansion: EU Inc. could reduce administrative barriers

A new European company legal form, EU Inc., is under discussion in the European Union. The initiative aims to make it easier for companies to establish, operate and expand across different Member States. BusinessEurope, of which the Lithuanian Confederation of Industrialists (LPK) is a member, is calling on EU institutions to ensure that the new instrument is simple, predictable and attractive to businesses.

Companies seeking to expand into other EU countries currently have to navigate different national company law requirements and procedures. This increases administrative burdens, requires additional resources and makes it more difficult for businesses to grow within the Single Market.

The EU Inc. initiative aims to establish a common company legal form recognised across all EU Member States, making it easier for businesses to operate and expand across borders. The proposed framework would be accessible to companies of all sizes and across all sectors.

Simpler procedures while maintaining existing safeguards

BusinessEurope emphasises that EU Inc. would be an additional, optional company legal form. Existing national company forms would remain in place, allowing businesses to choose the option that best suits their needs.

The new legal form would not change national labour or tax laws. Existing requirements concerning workers’ rights, taxation, anti-money laundering and other legal obligations would continue to apply. Standard checks and controls before and after company incorporation would also remain in place.

BusinessEurope stresses that reducing administrative burdens must go hand in hand with legal certainty and the preservation of necessary safeguards.

An important step towards strengthening European competitiveness

Simpler conditions for doing business within the Single Market are important for European competitiveness, business growth and the ability to make better use of the Single Market’s full potential.

According to BusinessEurope, EU Inc. could become a practical tool for reducing fragmentation within the Single Market and removing barriers to cross-border business expansion.

The initiative is currently under discussion in the European Parliament and the Council of the EU. BusinessEurope is calling on both institutions to ensure that the new instrument is simple, predictable and attractive to businesses of all sizes and sectors.

More information about the EU Inc. initiative and BusinessEurope’s position: https://www.businesseurope.eu/eu-inc/