EU propose cut to small business red-tape

The amount of red-tape that small firms have to deal with could be cut following new proposals by the European Union (EU).

The new Czech presidency has submitted plans that would give small companies new rights to ensure that their bills are paid on time and would enable them to do business with other firms in EU countries without having to register subsidiaries.

The Czech presidency has also proposed that small firms can become a 'European private company'. This would mean that they would have to only incorporate once to be allowed to do business in any EU member state - a privilege that has been available to large companies for several years.

"We want to make life easier for small firms. We see them as the cornerstone of economic activity," said a Czech government source.

"The current economic crisis is an opportunity, social and economic, for Europe. We are not simply saying there should be no regulation, but we would like better regulation."