What is European Economic Interest Group (EEIG)?
The European Economic Interest Group (EEIG) makes it much easier for its members to cooperate in the European Economic Area. For example, members can use their EEIG to develop collaborative activities that would be too costly on an individual level, or to concentrate funds and know-how in order to achieve better results for the enterprise.
The aim of the EEIG is to systematize, facilitate and develop the economic activities of its members. EEIG’s goal is not to make a profit. EEIG is mainly beneficial for small and medium-sized enterprises regardless of their type of legal entity, as well as for freelancers, farmers, associations or legal entities under public law. EEIG must have a registered office in one of the member states of the European Union (including the EEA). However, it does not have to be located in the same location where EEIG conducts its main business.
The aim of the EEIG is the economic activities carried out by its members and is limited to ancillary activities that only support the facilities of the enterprise. Because of this subsidiary nature, the purpose of the EEIG should be closely linked to the economic activities of its members. Any profit is considered to be the profit of its members, and, unless otherwise provided, it shall be divided equally. EEIG members are jointly and severally liable for the company’s obligations up to any amount. Since it is not the EEIG’s job to guide the activities of its members, it is prohibited to use EEIG as a group of companies or holding company with a corresponding financial interest.
For the EEIG, the binding legal entities are joint members with a meeting of members (as the highest corporate body) and manager (s). Otherwise, the internal organization is governed by the principle of freedom to express in contracts what the parties wish.
No share capital is required to establish an EEIG. For financing purposes, all types of contributions are possible, such as investments in money or property, as well as know-how or technology.
The EEIG must be composed of at least two members from different states of the European Economic Area. Members can be sole proprietorships, partnerships, companies and freelancers, farmers, associations and legal entities under public law.
Disclosure and accounting requirements
There is no disclosure requirement. Managers are only required to provide orderly accounting for the group and draw up an annual report.
The above is for informative purposes only. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.