New EU economic‑security roadmap resets the bar for foreign investment into Europe

The European Union has been developing the single market for many years, yet corporate regulation remains largely tied to national legal systems. For businesses, this means additional costs, the need to adapt to varying requirements, and difficulties when entering new markets within the EU. As a result, many companies limit their expansion to a single jurisdiction, even though modern digital services and economic integration make it possible to operate on a much broader scale. ELI Swiss has observed growing interest among entrepreneurs in structures that enable them to conduct business more freely across several European countries simultaneously.

Why the current model is no longer meets business needs

The traditional approach to company law has been centred on the national interests of Member States. Despite the existence of EU directives and regulations, companies continue to face differences in matters of registration, corporate governance, disclosure obligations and the protection of shareholders’ rights. Such differences increase the administrative burden and slow down decision-making. In our practice, we regularly encounter situations where companies are ready to expand their operations across several EU countries but delay taking this step due to the complexity of corporate structuring. ELI Swiss helps to assess such risks in advance and develop business models that take into account the requirements of various European jurisdictions.

The significance of EU company law

The further harmonisation of company law across the EU is considered one of the tools for enhancing the competitiveness of the European economy. This does not involve a complete abandonment of national regulation, but rather the creation of more harmonised rules for companies operating across several countries. Such an approach can reduce transaction costs, simplify cross-border transactions and facilitate investment. For medium-sized and large businesses, it also means the opportunity to scale up their operations more quickly without having to constantly adapt to new corporate requirements. Based on our experience, investors are much more willing to consider projects with a transparent and clear corporate structure. This is precisely why ELI Swiss pays particular attention to corporate planning issues right from the early stages of business development.

What reforms could support business growth?

One of the most widely discussed areas remains the further harmonisation of corporate procedures. The focus is on cross-border reorganisations, the digitalisation of corporate governance, the standardisation of disclosure requirements, and the streamlining of interactions between registration authorities in different countries. First and foremost, we always assess whether the corporate structure aligns with the business’s strategic objectives and potential European regulatory requirements. The development of digital corporate governance mechanisms remains equally important. Electronic registration procedures, remote shareholders’ meetings and digital document management are becoming the norm in the modern economy. ELI Swiss takes these changes into account when supporting international projects and corporate restructuring.

Practical business challenges

For many companies, choosing the optimal structure for operating in several countries simultaneously remains a key issue. Mistakes at this stage can lead to duplicate functionality, an increased tax burden and difficulties in securing financing. In such situations, it is important to analyse not only the company’s current objectives but also its prospects for further expansion from the outset. The corporate model must remain effective both at the market entry stage and during subsequent growth. In such cases, we recommend first carrying out a comprehensive analysis of the corporate, regulatory and commercial factors affecting business operations in specific EU countries.

Prospects for doing business in Europe

The debate on the further harmonisation of company law within the EU has long since moved beyond the realm of academic discussion. Increasing global competition requires Europe to create conditions under which companies can expand rapidly within the single market without excessive administrative barriers. Our team follows this approach: we analyse business objectives, assess the applicable EU legal framework, select the appropriate corporate structure and support the implementation of the project, taking into account the requirements of specific jurisdictions. This approach helps to minimise risks and maximise the effectiveness of international expansion. If you are interested in company formation, cross-border business structuring, corporate reorganisation or entering European Union markets, the specialists at ELI Swiss are ready to provide professional support.

FAQ

What benefits could further harmonisation of company law in the EU bring?

Harmonising the rules could reduce the administrative burden, make it easier to attract investment, speed up corporate reorganisations and enhance the international competitiveness of European companies.

Which companies stand to benefit most from the development of pan-European company law?

The greatest benefits are expected for companies that operate in, or plan to expand into, several European Union countries at once, as well as businesses focused on international investment and scaling up.