Brussels, 24/02/2015 (Agence Europe) -Luis de Grandes Pascual MEP has given a positive welcome to the draft directive on Single Member Limited Companies, despite the controversy it has provoked. The possibility of more easily setting up companies abroad is welcomed in the work document preceding the report, presented on Monday 23 February to the legal affairs committee at the EP.
The Commission decided to withdraw a similar proposal in 2013 for a statute for the Private European Company, following its stalling at the Council. De Grandes Pascual (EPP, Spain) acknowledges that on this occasion the Commission has sought to distance itself from the problems raised during the initial attempt. He notes that the Commission gave up all its hopes to create a kind of transnational European company, given that this would include a directive and not a regulation. He is concerned, however, that separating the status of the Single Member Limited Company's registered office from its central office, could involve companies shopping around for attractive tax or social advantages. The proposal stipulates that the Single-Member Limited Company's registered capital should be at least the euro but the rapporteur recommends that member states remain free to impose an obligation of setting up reserves. De Grandes Pascual also stresses that micro-enterprises and SMEs are covered by the directive's scope.
Several MEPs expressed their reservations to the rapporteur regarding the separation of the registered office and raised other concerns, such as the problem of the bogus self-employed and the legal basis of the text. The rapporteur is aware that the legislative draft is a controversial subject among MEPs but appreciated their goodwill in this respect. He believes that the proposal could potentially create new jobs and that all measures to encourage the spirit of enterprise and cut costs are essential. (Marie-Pauline Desset)