News

 

Freedom of establishment: a company may transfer its registered office in order to benefit from a favourable legislation

  • 30/10/2017

Freedom of establishment is the right upon which a company formed in accordance with the legislation of a Member State can convert itself into a company governed by the law of another Member State, provided that the conditions laid down by the legislation of the latter Member State are satisfied.

On this issue, with Judgment of 25th October 2017 in the case C-106/16, the European Court of Justice has explained that freedom of establishment enables a company, which has transferred its registered office to another Member State, to keep conducting its main, if not entire, business in the Member State in which it was first established.

Furthermore, according to the European Court, transferring one’s registered office to another Member State for the purpose of enjoying the benefit of more favourable legislation does not, in itself, constitute abuse of freedom of establishment.

NEWS

 
Click to view our video