The European Commission has drafted legal provisions that would help companies move across borders more easily, introduce digital registrations that would save EU companies millions of euros, and stamp out fraud and abuse.

Under the new rules, there will be common procedures for how a company can move from one member state to another, merge, or divide into two or more entities across borders. While at present only 17 member states allow for full online registration, this will be harmonised across the bloc.

In the EU, national rules differ greatly and in some cases impose excessive administrative hurdles, discouraging companies from pursuing new opportunities. There is also a risk that shareholders’ and employees’ rights are not adequately protected, said the commission.

Commissioner for justice, consumers & gender equality policy, Vera Jourovà said: “First, I want more online solutions for European businesses so that they cut costs and save time. Second, I want to offer the honest entrepreneurs the choice of where to do business and how to grow or reorganise their businesses.”

The new rules also contain measures to help national tax authorities fight against evasion and fraud as well as introducing safeguards to make sure workers’ and shareholders’ rights are not undermined. “Should ever this happen then the operation will stopped by the member state of departure before the move can take place,” said the commission.

National authorities will also be able to share information about disqualified directors in a bid to stamp our fraud and will be allowed to request a physical presence of company owners if they have suspicions of fraud.

The proposals are subject to approval by the European Parliament and EU member states.