Establishment of Service Providers

Establishment of Service Providers in Europe

Prohibition of requirements limiting the establishment of service providers to one Member State in relation to the E.U. Services Directive

The following is an examination of prohibition of requirements limiting the establishment of service providers to one member state regarding the European Union Servicies Directive [1]:

Prohibition of requirements limiting the establishment of service providers to one Member State: Prohibited establishment requirements

Article 14(2) requires Member States to remove all requirements prohibiting service providers from having an establishment in more than one Member State as well as requirements prohibiting service providers from being entered in registers or enrolled with professional bodies or associations in more than one Member State.

Requirements of this type mean that service providers already established in one Member State may not additionally establish in the territory of another Member State, and they are clearly at odds with the freedom to set up and maintain an establishment in more than one Member State. Member States will have to identify and abolish any rule existing in their legal system, including those laid down by professional bodies or associations, which prohibits a provider from registering with a professional association if already a member of a similar association in another Member State76. Moreover, Member States will also have to abolish any requirement obliging service providers to give up their previous establishment in another Member State upon their establishment in such Member States' territory, something that could result from a requirement to cancel registration in a business register in another Member State77.

Resources

Notes

  1. Information on prohibition of requirements limiting the establishment of service providers to one member state based on the EU Services Directive Handbook, UK Government

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