| Abstract [eng] |
Implementation of Freedom of Establishment by Transferring Registered Company Address in the EU: Challenges and Perspectives Articles 49 and 54 of the Treaty on the Functioning of the European Union guarantee companies the freedom to move within the internal market and to establish in another Member State. However, due to differences in the laws of the Member States and the lack of harmonization in the European Union, freedom of establishment is distorted and cannot be used directly by companies to transfer their registered office address. For this reason, there is a need to analyze the challenges and perspectives for a company cross-border mobility. The first part of this thesis analyzes the challenges that companies face in transferring their registered office address to another Member State. Conflict of national laws, variety of procedural requirements, the diversity of competent authorities and the protection of the public interest are the main challenges and incompatibilities arising from the divergence of laws between Member States. Also, the lack of legal instruments in the European Union and the vague practice of the case law of the Court of Justice of the European Union allow Member States to introduce different procedures and requirements. The second part of the Master's thesis analyzes future perspectives on cross-border mobility of companies. The newly issued Directive 2019/2121 and its provisions governing cross-border transfers are reviewed. The issue of Brexit is analyzed and it is explained how the transfer of the registered office of companies between the United Kingdom and the European Union will take place. Finally, a new initiative on virtual seat has been launched in Lithuania. Its advantages and possibilities to change the physical seat are analyzed. The analysis concludes that, at present, the principle of freedom of establishment is still "dependent" on national law, which poses challenges for companies to transfer their registered office address. For the future perspectives, the new Directive 2019/2121, which will enter into force in a few years' time, and the virtual home initiatives should harmonize and make the transfer process more attractive. On the other hand, the analysis has shown that there are currently no common rules on transferring company’s seat between the United Kingdom and the European Union, but it is expected that in the future the countries will find common solutions to facilitate cross-border mobility. |
