The EEIG explained.
Europe’s legal form for cross-border cooperation — origin, structure, liability, taxation. Explained honestly, limits included.
Origin and legal basis
The European Economic Interest Grouping was created in 1985 by Regulation (EEC) No 2137/85 and has been available since 1989 — the first supranational company form of the European Union. It is based directly on European law and is supplemented in Germany by the EEIG Implementation Act (EWIV-Ausführungsgesetz).
Its purpose is clearly defined: it facilitates and promotes the cross-border economic cooperation of its members — as an auxiliary entity alongside their existing businesses, not as a replacement for them.
Structure and members
Two members, two states
An EEIG needs at least two members from different member states of the EU or the EEA. DigiHap connects members from Germany, Austria and Slovakia.
Companies and individuals
Members can be natural persons, companies, clubs, associations, foundations and public-law bodies — partners from third countries as associated members.
Two bodies
The members acting collectively and one or more managers. The assembly may set up further bodies — advisory boards, working groups.
Formation and legal framework
Formation contract
A written contract stating the name, registered office, purpose, members and duration of the grouping — the statutes. Within this framework the EEIG can be shaped flexibly.
Entry in the register
The grouping is entered in the commercial register at its registered office — for DigiHap in Leipzig under HRA 19918 — and published in the Official Journal of the European Union.
No minimum capital
Unlike corporations, no capital contribution is prescribed. The members decide for themselves how to finance the grouping.
Lean administration
Few formal requirements, no disclosure obligations as for corporations; the management acts within the budget adopted by the members.
Liability
This is part of an honest explanation: the members of an EEIG are jointly and severally liable for its debts without limitation. That is why DigiHap admits new members only unanimously, requires mediation before any litigation and builds reserve funds for warranty cases and emergencies.
Under the statutes, associated members — such as partners from third countries — are not liable towards third parties.
Taxation
The EEIG is tax-transparent: the grouping itself is not subject to corporation tax. Its results are attributed to the members and taxed at their level under the applicable law. For German trade tax, special rules apply to the members.
How this affects your company is a question for your tax adviser — we provide all the documents needed.
Liability and taxation of an EEIG are described here in simplified, general terms. The specific consequences — for example regarding trade tax, attribution of losses or liability risks — depend on your individual situation and the law of your home country. This website does not provide financial, tax or legal advice; please involve your tax and legal advisers before making a decision.
What an EEIG can do — and what it cannot
- Pool and share its members’ resources, equipment and staff
- Organise joint projects, purchasing, marketing and sales
- Conclude contracts, acquire property, appear in court
- Build reserve funds and support members in emergencies
- Manage rights, trademarks and licences for its members
- Make profit for its own sake — the benefit lies with the members
- Exercise management or control over its members’ activities
- Hold shares in its members or be a member of another EEIG
- Employ more than 500 people
- Raise capital from the public
In comparison
| Feature | EEIG | GmbH (Ltd.) | GbR (partnership) |
|---|---|---|---|
| Legal basis | European law (Regulation 2137/85) | National law | National law |
| Designed for cross-border use | Yes — members from at least two states | No | No |
| Minimum capital | None | 25,000 euros | None |
| Own profit motive | No — the benefit lies with the members | Yes | Yes |
| Liability of the participants | Unlimited, joint and several | Limited to company assets | Unlimited |
| Taxation | Transparent at member level | Corporation tax at company level | Transparent |
| Register | Commercial register, EU Official Journal | Commercial register | Partnership register (voluntary) |
Simplified overview without claim to completeness — the specific arrangement belongs in legal and tax advice.