Article 43

Freedom of establishment (Article 43 EC of the Treaty)

Article 43 states “within the framework of the provisions set out below, restrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited. Such prohibition shall also apply to restrictions on the setting up of agencies, branches or subsidiaries by nationals of any Member State established in the territory of any Member State. Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 48, under the conditions laid down for its own nationals by the law of the country where such establishment is effected, subject to the provisions of the Chapter relating to capital”.

Article 43 guarantees the rights of individuals and nationals and companies from other Member States to exercise their profession on a permanent basis in another member state in the same manner as the Member State’s own nationals. Moreover non-discriminating restrictions concerning the access of nationals of a Member State to the market of another Member State are prohibited, including restrictions on the setting-up of agencies, branches or subsidiaries and all restrictions limiting access to certain professions.

Back to Legal History