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Issue № 78. February 2020

Creating Eurasian Company: Societas Europaea Experience

Alexey O. Sokolov

Postgraduate student, Department of Theory and Methodology of State and Municipal Administration, School of Public Administration, Lomonosov Moscow State University, Moscow, Russian Federation.

The article analyzes the experience of creating “European companies” (Societas Europaea (SE)) as a special legal form of entities that operates in the European Union and the European Economic Area, as well as the possibility of implementing the practice of creating supranational business structures in the conditions of the Eurasian Economic Union. It describes the regulatory frameworks of SE functioning, the legally prescribed methods and conditions of European companies creation. Based on the SE database of the European Institute of Trade Unions, the dynamics of registrations, the sectoral and country structure of registered and actually functioning SEs are analyzed. The features of European companies activities, the limitations and advantages of the legal form of SE are described. The main restrictions on the development of European companies are the high level of authorized capital and the costs of obtaining SE status; a large number of companies registering as SE “temporarily not included in a specific area”, the possibility of creating supranational structures only in the form of a public joint-stock company, which limits the prospects for the development of Pan-European small and medium-sized businesses. Among the advantages are the ability to carry out business activities throughout the EU without the forming additional organizational structures, on the basis of a unified system of rules and reporting and the related reduction of administrative costs; the right to change location of headquarters within the EU; decreasing of internal competition; rising of a company's brand value; improvement quality of management and social responsibility of a business; rising company's market price that has received SE status. In conclusion the possibility of using positive and negative European experience in the development of new legal form “Eurasian company” is shown.


Eurasian Economic Union (EAEU), European Union (EU), Eurasian company, Societas Europaea (SE), merger, holding, subsidiary SE, corporate mobility.

DOI: 10.24411/2070-1381-2020-10037

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