The European Private Company: Entrepreneurial Flexibility & the Practicalities of National Law
Rhidian Lewis, Aleksandar Buzdrev

Abstract
The European Private Company or Societas Privata Europaea (SPE) is an instrument presented by the European Commission with the aim of facilitating the establishment and operation of small and medium-sized enterprises (SMEs) in the Single Market. The features of this corporate vehicle distinguish it from other limited liability companies available to entrepreneurs in the Union. The European Private Company is designed to be widely accessible, easy to set up, cheap to run, and as uniform throughout the EU as possible, but also at the same time offering a great deal of flexibility to founders and shareholders to internally organise themselves. As with the Societas Europaea (SE), there are certain gaps in the SPE Statute, which prompt for the application of national laws. This solution could result in 27 different SPE forms in the EU, which will effectively lead to jurisdictional competition. Whether such competition would manifest into a ‘race to the bottom’ or it will lead to a conversion of the European corporate law and a creation of ‘market-for-rules’ that promotes economic growth, depends on what companies regard as a ‘more favourable’ system.

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