Rights of Multinational Enterprises Within European Union

TFEU free movement of MNEs transfer of registered office or real seat incorporation theories EU law transnational mergers and cross-border establishment rights

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March 20, 2025

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Member States use two approaches to determine the connecting factor: the real seat theory and the incorporation theory. As a result, multinational enterprises (MNEs) have a decentralized structure with numerous cross-border operations. This paper aims to examine how these transnational goals of MNEs can be realized under the EU's freedom of establishment principle and the incorporation theories of Member States.