Judgment — ECLI:EU:C:2006:361
Date: 2006-06-01
Language of the case: German
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Right of establishment
Concepts: General
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the Judgment Freedom of movement for persons – Freedom of establishment – Restrictions (Arts 43 EC and 48 EC; Council Directive 89/666) Articles 43 EC and 48 EC do not preclude legislation of a Member State which makes registration, in the register of companies, of a branch of a limited company established in another Member State subject to the payment of an advance on the anticipated cost of the publication of the objects of the company as set out in its instrument of constitution. The requirement for payment of an advance that merely reflects the actual administrative costs of publication in accordance with Eleventh Directive 89/666 concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State cannot constitute a restriction on freedom of establishment in so far as it neither prohibits, impedes nor renders less attractive the exercise of that freedom. Moreover, such legislation is not liable to place companies from other Member States in a less favourable factual or legal situation than companies from the Member State of establishment. (see paras 38-39, 43, operative part)