| Inspire Art Ltd | |
|---|---|
| Court | European Court of Justice |
| Full case name | Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd |
| Date decided | 30 December 2003 |
| Citation(s) | (2003) C-167/01, [2003] ECR I-10155 |
| Keywords | |
| Right of establishment | |
Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd (2003) C-167/01 is a leading corporate law case, concerning the EU law of freedom of establishment for companies.
Contents |
Inspire Art Ltd was incorporated in the United Kingdom, which accords to the "incorporation theory" rather than the "real seat theory" of establishing a business in conflict of laws. It wished to carry out business in the Netherlands, which also follows incorporation theory. Dutch law, however, applied to "pseudo foreign" companies to impose minimum capital requirements on businesses operating within the country. The question was whether this disproportionately interfered with Inspire Art Ltd's right to freedom of establishment.
The ECJ held that creditor protection did not justify imposing additional requirements to those of the United Kingdom, where Inspire Art Ltd was incorporated. In this case, creditors were sufficiently protected by the fact that the company did not hold itself out as a Dutch company, but one subject to UK law.
It held that national laws which restrict freedom of establishment must be:
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