“SOCIETAS EUROPAEA” - SE,
a multinational public-limited company
Floating registered office
A European Company may have its registered office in any one of the member states of the European Union. It is possible to change this registered office arbitrarily within the EU during the Company’s existence. The transfer of the registered office to another state will only result in a change of legislation by which the Company is regulated.
Beside other advantages, this enables the Company to choose a state that provides the most favourable conditions for carrying out business, for instance with regard to tax burdens, required paperwork, or minimizing the influence exerted by supranational authorities (including the exercise of contracts to protect investments, which is impossible in relation to the state where the Company’s registered office is situated).
As a matter of fact, the Company’s internal organization continues to be governed by the law under which the SE was incorporated, which facilitates its operation to a considerable extent.
Capitalization and tax regime of the SE
The authorized capital is paid up in the value of Euro 120,000. The area of direct taxes remains in the competence of individual member states. Accordingly, the European Company pays direct taxes in compliance with the law of the state of residence.
Lower personnel costs
In comparison with a joint-stock company (“a.s.”) under the Czech law (which stipulates that 1 to 3 persons are required for the Board of Directors and in all cases a minimum of 3 persons in the Supervisory Board - even in the case of a joint-stock company with a sole shareholder who is a sole member of the Board of Directors), an SE is allowed to elect only one person for the Board of Directors and only one person for the Supervisory Board.
Acquisition of an SE
A rather complicated formation of a SE (a requirement for two incorporating legal persons from various states of the EU or an existing SE) may be avoided by purchasing a pre-incorporated SE (“ready-made”). In view of that, only one natural person who otherwise cannot create an SE may become an SE shareholder.