Mizzi delivers keynote speech on cross-border company registration proposal

Labour MEP Marlene Mizzi was the keynote speaker at a conference in Brussels, the focus of which was a Commission proposal that may prove beneficial to small businesses and entrepreneurship in Europe. 

The conference, entitled 'Societas Unius Personae (SUP): What’s in it for SMEs?', was organized by the European Association of small and medium size enterprises UEAPME the leading voice of SMEs in Europe, in collaboration with ACCA (the Association of Chartered Certified Accountants) and BUSINESSEUROPE.

The main aim of the SUP proposal is to reduce direct and indirect costs for SMEs associated with the setting up of a company abroad.

Mizzi, who is also the rapporteur on that controversial dossier in IMCO Committee, opened the debate, saying, "Enhancing opportunities for small companies in Europe to conduct trade cross border business, will positively affect economic growth and creation of employment.

"This can be done by having simple, cost effective method of online cross border registration of companies as long as transparency and robust corporate governance is ensured, in order to protect creditors, consumers and workers' rights"

Mizzi was not convinced that the Commission’s proposal, as it stands, is the right instrument to offer such protection, going on to say that access to affordable capital, identifying foreign business opportunities, partners and other operational problems that SMEs face every day should also have been looked by the Commission.

She also stated, "The quality of companies should not be sacrificed for quantity with the risk that after a few months these companies are insolvent or bankrupt, at the expense of creditors and employees."

"If we get this legislation right, it will encourage entrepreneurship and create jobs; if we get it wrong it will be at the expense of consumers, creditors and employees. As a rapporteur It is my duty to ensure that  all stakeholders are protected and no abuse is made  of the availability of  simplified cross-border company registration".