Dawn of a new era - the multilingual EU company certificate is here

On 16 December 2024, the Council of the European Union adopted a directive aimed at modernizing company law for the digital age. This directive seeks to make business data more accessible, increase trust and transparency in companies across Member States, enhance interconnection between public administrations, and reduce bureaucratic hurdles in cross-border situations. The new directive unlocks the significant potential of digital tools, simplifying entrepreneurs’ lives, reducing administrative burdens, and making cross-border business operations faster, easier, and more transparent. It introduces online tools to facilitate the sharing of company data, such as the publication of information about external members, through the Business Register Interconnection System (BRIS).

In addition, a multilingual digital template (the digital EU mandate) will be developed to eliminate formalities such as Apostilles and unnecessary translations in cross-border procedures. The directive also simplifies the reporting process when a company establishes a subsidiary or branch in another Member State. Furthermore, certain types of companies, such as partnerships and limited liability companies, will be able to access cross-border multilingual EU company certificates free of charge. The directive also leaves room for cooperatives to be included in the future.

Member States will have 30 months to implement the necessary provisions to comply with the directive. It will apply 42 months after it enters into force. The directive represents an important milestone in achieving the European Union’s digitization objectives. It also plays a key role in updating and complementing the 2019 directive on the use of digital tools and processes in company law.