On 22 December 2021, the European Commission published a
Directive proposal setting out rules aimed at tackling the abusive
use of so-called shell companies (the
"Proposal"), to be implemented into
Member States' national law by 30 June 2023 and become
effective from 1 January 2024.
In a nutshell, the Proposal targets EU Member State entities
mainly involved in cross-border activities whose daily management
and decision-making is outsourced. Certain undertakings are
considered from the outset as being low-risk and are thus excluded
from the scope of the Proposal (e.g. listed companies and regulated
financial undertakings, notably UCITS and AIFs). The Proposal
introduces specific reporting obligations in order to identify
so-called shell entities.
