The significance of Directive 2019/1151 in the digitalization of European Union company law

Abstract

With the rapid development of information and communication technologies in the EU, the establishment of the digital single market through the EU's strategy has allowed for fair market competition using the internet by both individuals (natural persons) and legal entities. However, regulatory disparities among EU member states have posed challenges for businesses engaged in cross-border activities within the EU's single market. There are big differences among member states in terms of the availability of internet tools that enable entrepreneurs and companies to communicate with competent bodies regarding issues related to their business. Furthermore, e-government services differ among member states. Some member states offer comprehensive user-friendly services entirely online, while others struggle to provide digital solutions at crucial stages of a company's life cycle. In certain EU member states, the establishment of a company or the submission of document and information amendments to the register are only allowed in person, or in person or electronically, while in some member states this can only be done electronically. Digitalization was supposed to simplify the procedures for establishing business entities and enable free business establishment at the EU level. The aim of this paper is to analyze the legislative framework at the EU level, which should facilitate business operations in the digital world and provide security to participants in the European single market, with a special focus on EU Directive 2019/1151.