Everything you need to know about the Services Directive
The EU project is far from complete because, among other things, some forces are working against it. Forces that would like to see nation states on the map again, that enforce their idealism by war if necessary.
Others are equally reluctant because of their economic weakness, because they feel that they are being taken advantage of by the strong EU states.
The only remedy here is an economically strong EU.
Here we like to use the example of the mother who has 27 children under her care and loves them all equally. She is equally concerned about all her children. Our EU mother is Brussels together with her institutions. While the EU nation states focus their attention more on themselves, Brussels has the same desire precisely at the EU level, which includes all EU states. …
It is concerned about the well-being of all its 27 EU children.
It knows, and its experts have confirmed this several times, that the EU economic area will be strengthened if harmonisation, including the implementation of the Services Directive, is fully implemented. The latest figures on this are more than impressive, which you can see in the European Parliament’s brochure “Working in the European Union.
(Get the brochure here in our webinar)
What is the purpose of the EU Services Directive?
The Services Directive under EU law plays a very important role in why the construct of setting up a company in Bulgaria is promoted by the European Union: Full implementation of the Services Directive could increase trade in private services by 45% and foreign direct investment by 25%, resulting in an increase in GDP of 0.5% to 1.5% (Commission Communication “Europe 2020”)
Its successful implementation requires sustained political commitment and broad support at European, national, regional and local levels.
The purpose of the Directive is to remove barriers to trade in services in the EU by:
-simplifying administrative procedures for service providers,
-strengthening the rights of consumers and businesses purchasing services, and
-encouraging cooperation between EU countries.
Relevant points:
The scope of the Directive covers a wide range of services, such as:
-retail and wholesale of goods and services,
-the activities of most regulated professions, such as legal and tax advisers, architects and engineers,
-the activities of the public sector,
-the activities of the public sector,
-the activities of the construction sector,
-business-related services, such as office services, management consultancy and business services. such as office services, management consultancy and event organisation, and
-leisure and tourism services.
Certain services are excluded from the Directive. These include financial services, certain electronic communications services, services provided by temporary employment agencies, private security services and gambling.
The Directive allows companies to set up branches in countries other than their own EU country. To make this possible, EU countries must take various measures, including:
-providing one-stop shops to provide information and assistance with administrative procedures and ensuring that these procedures can be completed electronically;
-reviewing and simplifying their general authorisation schemes for access to services;
-eliminating discriminatory requirements such as nationality or place of business, as well as restrictive requirements such as the economic needs test, which requires businesses to demonstrate a need for their services to the authorities.
Similar safeguards are provided for the rights of recipients of services (consumers or businesses) to increase their confidence in the internal market. EU countries are thus obliged to:
-remove obstacles for service recipients who want to use the services of a provider established in another EU country, such as the obligation to obtain an authorisation;
-eliminating discriminatory requirements based on the nationality or residence of the service recipient;
-providing general information and assistance on legal requirements, in particular consumer protection rules, and remedies available in other EU countries.
The Services Directive had to be transposed into national law in all EU countries by 28 December 2009. In 2012, the European Commission adopted a Communication on the implementation of the Services Directive. This report:
-took stock of the progress made by EU countries in removing unjustified barriers to the internal market for services;
-identified restrictions that had not yet been removed, such as the application of residence requirements. such as the application of residence requirements or the economic needs test; and
-made proposals to improve the functioning of the internal market for services.
The Directive entered into force on 28 December 2006. It had to be transposed into national law by EU countries by 28 December 2009.
Associated acts
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Towards a better functioning internal market for services – Exploiting the results of the mutual evaluation process under the Services Directive (COM(2011) 20 final of 27.1.2011).
Commission Decision 2011/130/EU of 25. February 2011 on minimum requirements for the cross-border processing of documents which have been electronically signed by competent authorities in accordance with Directive 2006/123/EC of the European Parliament and of the Council on services in the internal market (OJ L 53, 26.2.2011, p. 66-72).
Subsequent amendments to Decision 2011/130/EU have been incorporated into the original text. This consolidated version is for documentation purposes only.
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the implementation of the Services Directive. A partnership for new growth in services 2012-1015 (COM(2012) 261 final of 8 June 2012).
Commission Implementing Decision 2014/148/EU of 17. March 2014 amending Commission Decision 2011/130/EU on minimum requirements for the cross-border processing of documents which have been electronically signed by competent authorities in accordance with Directive 2006/123/EC of the European Parliament and of the Council on services in the internal market (OJ L 80, 19.3.2014, p. 7-9).
Inform yourself about the implementation of the Services Directive with the help of a company formation abroad.
- Advantages of setting up a company in Bulgaria
- EU Parent-Subsidiary Directive
- Entrepreneur profiles
- EU Gross Domestic Product
- Services Directive under EU Law
- Company Name & Branding
- Formation of Bulgarian Company
- Overview of formation documents
- Bank account & Domicile
- Commercial register & Equipment
- Restructuring
- Tax and reporting obligations
- Commencement of operations
- Stumbling blocks during formation
- Commencement of operations
- Incl. Documents on EU tax law, calculations, case studies, workbook with checklists and tips from the operational business of DE entrepreneurs
Your free advice from EU tax experts.
As a European business consultancy, we strive to ensure that each of our clients does not take any risks with their company formation solution, but instead achieves a legal tax saving. Running a company that starts a real business in Bulgaria causes higher costs than a pure letterbox company, but it is the only way to achieve a legal tax saving.
We wish you all the best for your business and your professional future!
Your 4 Europe Consulting Team
Do you have any questions? We are here for you!
Panagiotis Alexandridis
Managing Director 4 Europe Consulting
Dr. Franziska Pühringer
EU Business Consultant
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