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
- Simplified Operations: you can manage your business under a single European brand without setting up multiple subsidiaries.
- Greater Mobility: you can transfer your registered office to another EU country without dissolving the company.
- 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:
| Method | Who Can Use It | Requirements |
|---|---|---|
| Merger | Public limited liability companies | At least 2 companies from different EU countries |
| Holding Company | Public or private limited liability companies | At least 2 companies from different EU countries or a subsidiary/branch in another EU country for at least 2 years |
| Subsidiary | Companies, firms, or other legal bodies | At least 2 entities from different EU countries or a subsidiary/branch in another EU country for at least 2 years |
| Conversion | Public limited liability company | A company with a subsidiary in another EU country for at least 2 years |
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:
| Belgium | Hungary | Slovakia |
| Bulgaria | Ireland | Slovenia |
| Croatia | Italy | Spain |
| Cyprus | Latvia | Sweden |
| Czechia | Lithuania | Sweden |
| Denmark | Luxembourg | |
| Estonia | Malta | |
| Finland | Netherlands | |
| France | Netherlands | |
| Germany | Portugal | |
| Greece | Romania |
Examples of European Companies
| Name | State in which the company is seated |
|---|---|
| Airbus SE | Netherlands |
| Atos SE | France |
| AmRest SE | Spain |
| Aixtron SE | Germany |
| Axel Springer SE | Germany |
| Autopistas de Puerto Rico | Spain[a] |
| Allianz SE | Germany |
| BASF SE | Germany |
| Bilfinger SE | Germany |
| Christian Dior SE | France |
| Colt CZ Group | Czech Republic |
| Conrad Electronic | Germany |
| Dassault Systèmes | France |
| Deutsche Börse | Germany |
| E.ON SE | Germany |
| EPEX SPOT | France |
| Ferrovial SE | Spain |
| Fresenius SE | Germany |
| Getlink | France |
| Gfk SE | Germany |
| Graphisoft SE | Hungary |
| KWS Saat SE | Germany |
| OHB SE | Germany |
| Puma SE | Germany |
| LVMH Moët Hennessy Louis Vuitton SE | France |
| MAN SE | Germany |
| New Work SE | Germany |
| Nordex SE | Germany |
| Porsche Automobil Holding SE | Germany |
| Rocket Internet | Germany |
| Hannover Rück SE | Germany |
| Vapiano SE | Germany |
| Senvion SE | Germany |
| HAWE Hydraulik SE | Germany |
| ADVA Optical Networking SE | Germany |
| Equens SE | Netherlands |
| Dekra SE | Germany |
| SGL Carbon SE | Germany |
| Prosafe SE | Cyprus |
| ProSiebenSat.1 Media | Germany |
| Klöckner | Germany |
| Songa Offshore SE | Cyprus |
| SAP SE | Germany |
| Schneider Electric SE | France |
| Scor SE | France |
| Solon SE | Germany |
| Strabag SE | Austria |
| TotalEnergies SE | France |
| Unibail-Rodamco-Westfield SE | France |
| Zalando SE | Germany |
| Ziehl-Abegg SE | Germany |
- ^ 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.
