European Private Company
Encyclopedia
A European Private Company is a legal form for a limited liability
company that is currently being proposed by the European Commission
to be introduced across the European Union
. It forms a company of limited liability
, similar to the English limited company
, the Austrian or the German GmbH, the Dutch BV, or the French SARL
. The aim of the proposal is to remove the current need for limited companies to reincorporate themselves in the corresponding legal form in all the EU member countries in which they want to trade, which currently represents a substantial administrative burden for small and medium enterprises. It was proposed that the SPE company form be introduced across the EU and EEA area from July 2010. The SPE is finally set to arrive this year (2011) and is being slowed down by the current ruling parties of Germany (CDU) to allow their own national alternative (the mini-GmbH) to grow first. The SPE could facilitate starting new businesses and European Integration and would thus help small businesses and entrepreneurs due to manageable capital requirements not too dissimilar to the british limited (Ltd).
Limited liability
Limited liability is a concept where by a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its...
company that is currently being proposed by the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
to be introduced across the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. It forms a company of limited liability
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
, similar to the English limited company
Limited company
A limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be...
, the Austrian or the German GmbH, the Dutch BV, or the French SARL
Société à responsabilité limitée
A Société à responsabilité limitée, also known by the acronym SARL , is a private limited liability corporate entity that exists in France, Switzerland, Luxembourg, Macau, Algeria, Morocco, Tunisia, and Lebanon and has commerce as its purpose.A SARL is a company whose liability is limited to the...
. The aim of the proposal is to remove the current need for limited companies to reincorporate themselves in the corresponding legal form in all the EU member countries in which they want to trade, which currently represents a substantial administrative burden for small and medium enterprises. It was proposed that the SPE company form be introduced across the EU and EEA area from July 2010. The SPE is finally set to arrive this year (2011) and is being slowed down by the current ruling parties of Germany (CDU) to allow their own national alternative (the mini-GmbH) to grow first. The SPE could facilitate starting new businesses and European Integration and would thus help small businesses and entrepreneurs due to manageable capital requirements not too dissimilar to the british limited (Ltd).