Although digitalization has been mentioned as one of the fundamental areas for the development of the global economy for several years, many countries still do not follow rapidly changing trends. There is no doubt that companies that use information-communication technology for creating more user-friendly experiences and effectively adapting business models hold an advantage against others. The traditional approach is not a method, which Slovenia could rely on, but can accelerate economic growth through digitalization. This is also reflected in the current situation of the corona-crisis, where we need to aim higher and compare ourselves to the best. Some companies in Slovenia are relatively well digitalized, but the vast majority in my opinion are still not, or not as well as they could be. Digitalization strengthening can help countries to create a better and more attractive business environment for economy, develop the soft skills of the population and make day-to-day activities much easier by developing smart solutions. In this process digitization of public administration is a basic condition for the introduction of a digital model of state functioning. The aim of the whole process of digitalization must be primarily to facilitate cross-border operations, to overcome environmental barriers (language, diverse legal systems), and to speed up procedures. There is a great importance for law to follow the trends in modernization and digitization of procedures. While doing so, the integrity and legal certainty of the proceedings must be adequately ensured.
Proposal for a DIRECTIVE (EU) 2019/1151[1] explicitly recognizes the role of notaries as crucial in ensuring legal certainty and preventing abuse of company law in today’s increasingly digitalized world. Digitalized procedures already used for the interaction between notaries and company registers in many member states of the European Union show, that European notaries are ready to adapt to the digital business model. One of the fundamental objectives of the Member states by 2021 is to take all the necessary steps to allow the establishing of limited liability companies completely online.
As an example of good practice I would like to point out the Latvian arrangement and its sworn notaries portal, which enables the use of notarial services fully online, through the Internet (the web portal offers many customer services, such as an online notarization visit, an online notary consultation and a virtual notarial office). After resolving technical issues between countries regarding the implementation of the eIDAS Regulation[2], the service will be available to all EU citizens holding an e-signature issued in any EU Member State. This will greatly simplify the provision of cross-border services. This kind of online notary service is considered the first in Europe.
In the process of the establishing companies online, European Union Member states do also need to respect the “once only” principle asserted in the Union, as evidenced, inter alia, by Regulation (EU) 2018/1724[3], the European Commission’s e-Government Action Plan and the Tallinn Declaration about e-Government. This principle means that companies do not have to submit the same information to public authorities more than once. It would therefore make sense to design interconnected registers of individual Member states to allow the storage and transmission of certain information.[4] Introducing digital business in law would also make sense in other areas. Such an action would be, for example, the automatic enforcement of wills made in digital form. After the testator’s death was recorded in the register, such a will could be automatically executed.
Law is therefore an area where providing the security, privacy and integrity of data is particularly important. In my opinion It would also make sense to introduce blockchain technology into law procedures which is highly resistant to interventions of individuals. The use of the blockchain chain for legal services has many advantages in terms of security of stored documents and actions, access to documents with a private key, secure storage on blocks with appropriate timestamps, direct transfer of ownership of documents online. To conclude my thought, the possibilities of introducing digitalization into law are enormous, and it depends on us, how we will face the opportunities.
[1] 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, Official Journal of the European Union, L 186/80.
[2] REGULATION (EU) No 910/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of, 23 July 2014, on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC,Official Journal of the European Union, L 257/73.
[3] REGULATION (EU) 2018/1724 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL, of 2 October 2018, establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012, Official Journal of the European Union, L 295/1.
[4] Case study: By setting up linked registers, a company established in one member state and wishing to register a subsidiary company in another member state would use the documents or information previously submitted to the register in the country of incorporation of the parent company.
Primož Zupanič, master’s student of Faculty of Law, University of Maribor