Setting up a company online in Spain and the EU will be possible from 2021! The European Parliament and of the Council of 20 June 2019, has amended the directive decree in regards the utilization of digital instruments and processes in the field of company law.
What is the purpose of this amend?
The purpose of this new directive is to facilitate the expansion of E-companies on the European market. In other words, the use of digital tools and processes to more easily, rapidly and cost-effectively initiate economic activity by:
- Setting up a company
- Opening a branch of that company
- Setting up a subsidiary
- Comprehensive and accessible information on companies,
This implies ensuring that legal and administrative environment is equal to the new existing social and economic challenges of globalization and digitization.
The importance of encouraging, updating and implementing economic means when setting up companies on in the EU countries. Doing so might result in leverage, by creating a more competitive European economic market. This Directive therefore proposes to develop a tool for the online incorporation and registration of companies and the presentation of the necessary documentation.
As a novelty, the Directive establishes that it will be possible to electronically identify shareholders and directors by telematic means and thus avoid the requirement for them to have to travel physically. But before, member States should ensure to national and cross-border users that secure electronic identification and the use of trusted services is possible (in accordance with Regulation (EU) No 910/2014 of the European Parliament and of the Council).
Often times the digitization of a traditional process such as company formation in Spain might make a seasoned investor uneasy. In order to promote confidence in e-business transactions, including cross-border transactions within the internal market, it is important that investors, shareholders, business partners and authorities have easy access to company information.
In Conclusion, this new Directive represents an advance and progress for the member states of the European Union to encourage and develop competition between companies and to make the internal market stronger and more prosperous.
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