THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 50(1), Article 50(2) and Article 114 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee [OJ C,, p..],

Having regard to the opinion of the Committee of the Regions [OJ C,, p..],

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) Directive (EU) 2017/1132 of the European Parliament and of the Council [Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law (OJ L 169, 30.6.2017, p. 46).] lays down inter alia rules on disclosure of company information in business registers of Member States and a system of interconnection of registers. That system has been operational since June 2017 and currently connects all Member States' registers. In response to digital developments, Directive (EU) 2017/1132 was amended by Directive (EU) 2019/1151 of the European Parliament and of the Council [Directive (EU) 2019/1151 of the European Parliament and of the Council of 20 June 2019 amending Directive (EU) 2017/1132 as regards the use of digital tools and processes in company law (OJ L 186, 11.7.2019, p. 80).] to provide rules for the fully online formation of limited liability companies, registration of cross-border branches and submission of documents to business registers.