engleski

Online formation of Limited Liability Companies

Digitalization of the registration procedure enables lower initial costs for formation of companies in EU Member States. It is especially important for small and medium-sized enterprises (SMEs) which perform their business activities on national and cross-border level. Potential abuses of the registration procedure are prevented by the notary certification or by the registration authority checking of the authenticity and validity of the company information. Some Member States already introduced online formation of limited liability companies (LLCs), which are the most common form of companies in business practice. The European Parliament and the Council enacted Directive (EU) 2019/1151 which amends Directive (EU) 2017/1132 as regards the use of digital tools and processes in company law in June 2019 (Digitalization Directive). Its purpose is harmonisation of Member States national provisions on online formation of companies, on online registration of branches and on online filing of documents and information by companies and branches. Member States must harmonise their national provisions with the Digitalization Directive by 1 August 2021. This period may be extended up to one year if a Member State encounters particular difficulties in transposition of the Directive. In Croatian Law the online formation of LLCs is introduced in 2019. Such formation is limited to LLCs and simple LLCs with share capital entirely paid in cash.

online formation ; limited liability company ; European Union ; Croatia

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