Eumedion: companies may only have a completely virtual registered office under certain conditions
News · 08-04-2022
The European Commission should be cautious about offering companies the option of a completely virtual registered office. If such an option is offered, there must be strict safeguards for the integrity of the company concerned.
This is what Eumedion writes in its response to the consultation of the European Commission on upgrading digital company law, which was submitted today. In the consultation document, the European Commission asks, among other things, whether European companies should still be obliged to have a physical registered office. Now that an increasing number of companies no longer have permanent physical offices, the European Commission wants to examine whether companies can suffice with a virtual domicile. Eumedion warns the European Commission that this will make it even easier for companies to evade taxes, to conduct money laundering activities, avoid sanctions and circumvent shareholders' rights. In its response, Eumedion encourages the European Commission to incorporate in European company law the possibility for all European companies to organise a hybrid shareholders' meeting as well as a shareholders' meeting spread over time.