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European Company Formation

The SE is a type of public limited-liability company regulated under EU law known as well as European Company. The European company  concerns  business who want to expand to another EU country.

There are several advantages to setting up a European Company:

  • Framework for involving staff employed in more than one country in running your business.
  • Greater mobility in the single market. For example, you can transfer your registered office to another EU country without having to dissolve the company.
  • A simpler way to run business across more than one EU country: you can reorganise your activities under a single European brand name and run your business without setting up a network of subsidiaries.

How to set up a European Company:

  1. As Merger (to form a European Company) - concerns Public limited liability companies and requires at least 2 companies from different EU countries.
  2. Forming a European holding company – concerns Public or private limited liability companies and requires At least 2 companies from different EU countries or a company that had, for at least 2 years, a subsidiary or a branch in another EU country.
  3. Forming a European subsidiary – concerns Companies, firms or other legal bodies and requires At least 2 companies  from different EU countries or an entity that  had, for at least 2 years, a subsidiary or a branch in another EU country.
  4. Conversion – concerns a public limited liability company and requires A company that had, for at least 2 years, a subsidiary in another EU country.

Conditions for setting up a European Company

A European Company has legal personality as a public limited liability company. To establish a European Company you must have:

  • your registered office and your head office must be in the same EU country
  • a presence in other EU countries (subsidiaries or branches) or your company and other companies involved need to be governed by the laws of at least two different EU countries
  • a minimum subscribed capital of EUR 120 000
  • an agreement on employees participation in the company's bodies and on how they will be consulted and informed