Recital 23

(23) In order to keep company information in registers updated, it is also important to identify companies which no longer fulfil the requirements to continue to be registered in the business register. While Member States should not be obliged to conduct periodic inspections, they should have transparent procedures in place to verify, in specific cases where doubts have arisen, the status of such companies. While companies can temporarily suspend their activities for valid reasons, it is important that their status in the business register be updated accordingly. For example, indicators of the need to update company information in the register could include the fact that a company does not have a functioning board of directors as required by national law, has not filed accounting documents, or lack of any economic activity for some years. Similarly, the fact that a large number of companies are registered at the same address could indicate that some of those companies might have been set up for abusive purposes. Relevant verification procedures in Members States should allow companies to explain their situation and provide the necessary data, within reasonable deadlines, and should ensure that the status of the company, for example, whether it is closed, struck off the register, wound up, dissolved, undergoing insolvency proceedings, economically active or inactive as defined in national law and where it is recorded in the national register, is updated accordingly. Those verification procedures should also provide, as a last resort, for the striking off of a company from the register in accordance with the procedures set by national law. Information about those verification procedures should be made publicly available in accordance with Directive (EU) 2017/1132.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.