Setting up a European Company (SE)

Setting up a European Company (Societas Europaea, SE) can be a strategic move for businesses looking to expand across Europe. A European Company is a public company registered in accordance with the corporate law of the European Union.

Several of the Euro Stoxx 50 stock market index of leading eurozone companies have been registered as SE inclouding: Airbus, Allianz, BASF, E.ON, Fresenius, LVMH Moët Hennessy Louis Vuitton (and its subsidiary Dior), SAP, Schneider Electric, TotalEnergies, Unibail-Rodamco-Westfield and Vonovia.

Here is a comprehensive guide to help you understand the process:

What is a European Company (SE)?

A European Company, also known as Societas Europaea (SE), is a type of public limited-liability company that allows businesses to operate in different European countries under a single set of rules. This simplifies the process of running a business across multiple EU countries.

Advantages of a European Company

1. Simplified Operations: you can manage your business under a single European brand without setting up multiple subsidiaries.
2. Greater Mobility: you can transfer your registered office to another EU country without dissolving the company.
3. Employee Involvement: it gives you a structured system for involving employees from different countries in the company’s operations.

Requirements for Setting Up

To establish a European Company, you will have to meet the following criteria:

• Your registered office and head office must be in the same EU country.
• Presence in other EU countries through subsidiaries or branches.
• Minimum subscribed capital of EUR 120,000.
• Agreement on employee participation in company bodies.

Methods to Set Up a European Company

There are four main ways to set up a European Company, depending on your situation:

Transferring the Registered Office

You can transfer your registered office to another EU country without winding up the company, provided you give two months’ public notice and obtain shareholder approval. Relevant authorities must ensure all formalities are completed, including protecting creditors’ interests.

Accounting and Legal Compliance

Your European Company must follow the accounting rules for public limited-liability companies in the EU country where it is registered. Specific rules may apply if your company is a credit or financial institution or an insurance undertaking.

Winding Up and Insolvency

In case of winding up, liquidation, insolvency, or cessation of payments, your European Company must adhere to the rules of the country where it is registered.

Country-Specific Rules

While the general EU rules apply, there may be specific regulations in each country regarding authorities to liaise with and employee participation arrangements.

Find out what specific rules apply to European Companies in your country:

Examples of European Companies

1. ^ Headquartered in the U.S. insular area of Puerto Rico, but wholly owned by a Spanish company

Setting up a European Company can streamline your business operations across Europe, it can provide a unified framework and greater flexibility. For more detailed information, the European Commission’s official website.