Company registration, Other Legislation : European Economic Interest Groupings

European Economic Interest Groupings or the EEIG Regulation aimed at creating a new legal identity. EEIG is a kind of association, which is formed between legal bodies or companies or individuals belonging to different European Union countries who have to operate jointly across the borders. The chief aim of this body is to evolve the economic activities of the members. Activities of EEIG are quite different from the tasks of its member-owners.

EEIG can be set up in any Member States of EU and can operate from any part of those states. EEIG can go for arrangements with companies outside EU, but those organizations can never become a member of EEIG.

 What tasks do the EEIG perform?

EEIG activities must relate to economic activities of its members but the initiatives should come as auxiliary. The words “ economic activity” has a broad connotation. For instance even research institutes and universities can be a part of EEIG. Even people following similar professions can form an EEIG. However, working individuals must consider that whether participation in such a group is contrary to the rules of their vocation. EEIG does not practise any particular profession. Rather it supports the members in their respective profession. EEIG works on the wishes of its members.

What are the merits of an EEIG?

If you are a part of some EEIG, you will enjoy numerous advantages. EEIG has the right to go for contracts and also has the power to sue. Moreover, the members also have the flexibility regarding the financing methods. Smaller forms that might be a part of the group can contribute their skills and services instead of capital. Rights, funding methods and obligations vary from member to member and everything is laid down in a contract, which facilitates formation of the group.

What is the process of structuring EEIG?

The procedure of setting up of EEIG is very similar to that of the formation of a company. An EEIG must have at least 2 members from two different Member states. There should be a manager whose function will be to carry on with the daily operations of the EEIG.

Who can be a member of EEIG?

As per the regulations, EEIG membership is open to all the people and organisations located within the Union. The only requirement is that every member has to be involved in some kind of economic activity in the EU before being a member of the group.

Is there any specific nationality requirement?

AN EEIG has to have two members who have their principal activities or central administrations based in any of the member states. Firms, companies and legal bodies has to fulfil the following requirements in order to be eligible for a membership in EEIG:

• They have to be formed as per the laws of any of the Member States and should have their statutory or registered office within the EU.
• They have to have their central management operating within the limits of EU.
• Individuals who perform commercial, industrial, agricultural or craft activity or offer professional assistance within the limits of EU.

Organizations or individuals who do not belong to EU countries cannot be members of EEIG.

Termination and formation of an EEIG has to be published in the London, Belfast or Edinburgh Gazettes. The information related to creation and cessation of EEIG will then have to be published in the Official Journal of the European Union within 1 month. Apart from this information, other events and changes related to the EEIG must be published in the Gazette.