ISSN 2736-1608
International Journal of Law and Legal Studies ISSN 2736-1608 Vol. 13 (2), pp. 001-012, February, 2025. Available online at www.internationalscholarsjournals.org © International Scholars Journals
Full Length Research Paper
An International Comparison and Study of Limited Liability Company Variants Across EU Member States
Lawyer Dr Sven Gelbke, Legal Assistant Julian Gosmann*
Received July 22, 2024; Received November 28, 2024; Accepted November 29, 2024
Abstract
Limited liability companies (LLCs) offer a crucial framework for businesses, allowing owners to operate with limited financial liability. Within the European Union, various LLC forms reflect each country's unique legal, historical, and economic backgrounds. This paper examines the key differences in legal frameworks, capital requirements, formation processes, and management structures of LLCs across EU member states. Despite several EU directives, such as Directive (EU) 2017/1132, harmonizing certain corporate law aspects, no uniform European LLC exists. The Societas Europaea (SE) provides a cross-border corporate form but is often less attractive to small and medium-sized enterprises due to its complexity and costs. Efforts to establish a Europe-wide LLC, like the Societas Privata Europaea (SPE) and the Societas Unius Personae (SUP), have not succeeded. This article serves as a guide for international lawyers and entrepreneurs deciding on the most suitable EU country for establishing an LLC. It highlights the variations in share capital, formation procedures, notarization, and management requirements, offering insights into the most business-friendly environments within the EU.
Keywords: Limited Liability, European Union, Legal Frameworks, Capital Requirements, Societas Europaea (SE), Harmonization.