COMPET on single-member private limited liability companies

A meeting of the COMPET in the formation of ministers responsible for internal market and industry.

 On 28 May 2015, the Competitiveness Council (COMPET) agreed on a compromise text for a draft directive aimed at creating a new status for single-member private limited liability companies.

The agreement is based on a compromise text tabled by the presidency. It constitutes the Council's general approach, which will serve as the basis for forthcoming negotiations with the European Parliament.  

Chairing the Council meeting, the Latvian Minister for Economics Dana Reizniece-Ozola said that  "this dossier is a concrete example of the advantages digitalisation can bring to the single market and to all of us: to citizens who are considering joining the start-up movement and establishing their own company, to employees who will work at these companies, to SMEs which are considering establishing subsidiaries, and to public administrations which will become more digital. Everyone stands to benefit in terms of modernisation, growth and jobs".  

The draft directive aims to facilitate the cross-border activities of businesses, particularly SMEs, and the establishment of single-member companies as subsidiaries in other member states, by reducing the costs and administrative burdens involved in setting up these companies. This will enable businesses to enjoy the full benefits of the internal market. 

To achieve this objective, the draft directive introduces a common framework governing the formation of single-member companies. 

Member states would have to ensure that their national legal systems provide for a form of company that complies with common rules established in the directive. The legal form would be established at the national level. It would have an EU-wide abbreviation: SUP (Societas Unius Personae).  

The Confederation of Industry of the Czech Republic has been following closely the negotiations on the draft directive of the new status for single-member private limited liability companies. The Confederation supports the Czech Republic’s position to the product safety and market surveillance package as well.