Brussels sets sights on cross-border company HQ transfers

The European Commission is drawing up plans to regulate how companies transfer their legal headquarters between countries in Europe, according to a report.

The move would have significant implications for Luxembourg, which has previously opposed proposals requiring companies to locate their HQs where they do the most business.

A report in Euractiv suggests Věra Jourová, the EU Commissioner for Justice, Consumers and Gender Equality, is including changes to the rules on transferring HQs in a company law directive that would establish an EU-wide framework.

The company law package was mentioned in European Commission President Jean-Claude Juncker's letter of intent to the European Parliament following his 'State of the Union' speech in September.

"As mentioned by President Juncker in the letter of intent," a spokesman for the Commission said, "the aim of the upcoming company law proposal is to enable companies to make the best of digital solutions and provide efficient rules for cross-border operations.

“However, the exact details and content of this proposal are currently under preparation."

The issue of transferring company seats has added political impetus due to Britain's vote to leave the European Union, which has prompted UK companies to consider transferring HQs to the Continent to maintain access to the single market.

It also fits into a broader crackdown on tech giants in Europe, following hot on the heels of a proposal to tax the revenues, rather than the profits, of digital companies.

(By Hannah Brenton, hannah.brenton@wort.lu, +352 4993 728)