The European Commission today proposed new company law rules to make it easier for companies to merge, divide, or move within the EU single market. The rules aim to stimulate the growth potential of European companies by digitalising the process of setting up and running a business.
According to an EC release, the proposal sets out common procedures at the EU level on how a company can move from one EU country to another, merge, or divide into two or more new entities across borders. Under the proposed rules, companies will be able to move their seat from one EU Member State to another following a simplified procedure. The new rules for cross-border conversions and divisions will also include specific measures that will help national authorities address abuse. Transfers of this kind will include effective safeguards against abusive arrangements that circumvent tax rules, undermine workers' rights, or jeopardise creditors' or minority shareholders' interests.
Read a list of “frequently asked questions” (FAQs) about the proposed new company law rules.
Read an April 2018 report prepared by KPMG's EU Tax Centre
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.