Brussels, 24/02/2011 (Agence Europe) - Nowadays more and more companies are offering their services to consumers across the EU. As a result of the growth of e-commerce, goods and services are crossing borders at an unprecedented rate. Consumers, particularly in the online market, need to be able to access reliable and up-to-date information in order to verify the legitimacy of these businesses. It is with this in mind that the European Commission presented to the European Parliament and the EU Council of Ministers on Thursday 24 February draft legislation to interconnect business registers within the EU. Company registers provide company information that is essential for consumers and business partners alike, such as information on a company's legal form, its headquarters, capital and legal representatives. Business registers are currently organised nationally, regionally or even locally and are unable to provide information efficiently and transparently because exchange procedures are lengthy and often only available in the local language. Registers differ from one country to the next and are often not kept up-to-date. When in place, the new interlinking of business registers will make life easier for companies wishing to set up in another member state or to do business with companies in other member states or directly in other country.
The new legislation will require all member states to link up their business registers electronically. This will help business registers provide reliable and up-to-date information on the status of the company and its foreign branches in Europe. This will also improve efficient cooperation between business registers in cross-border transactions and mergers by ensuring better electronic links between them. The third aspect concerns improving cross-border access to official business information for interested parties such as consumers, existing or potential business partners, the public and the tax and justice administration throughout the EU. It is estimated that facilitating cross-border electronic access to business information could generate annual savings of more than €69 million.
Cross-border access to business information will also be useful for consumers. The Commission's 2009 report on e-commerce showed that in 2008, 33% of individuals in the EU ordered online, but cross-border shopping was only done by 7% of consumers. Purchasers explained that one reason for not buying in another country was the difficulty of establishing whether a seller (usually a company) was trustworthy or not, mainly due to insufficient information and language problems. The new rules should increase confidence and transparency in the European single market, ensuring a safer business environment for consumers.
Current EU legislation has required all member states to set up online business registers since 2007 but it has been left to the country to decide whether or not their registers cooperate with their counterparts in other countries. (O.L./transl.fl)