EU Commission proposal on EU Business Wallet published

Notaries are strongly committed to proactively using modern technologies to provide public services. They are a driving force behind the digitalisation of the preventive administration of justice. The German Federal Chamber of Notaries is playing a dynamic role in guiding and shaping this digital transformation. Examples of this include the in-person electronic authentication and the electronic notary administration exchange (eNoVa). Digitalisation is also being driven forward at a European level. A recent example is the European Commission's draft proposal of 19 November 2025 on the establishment of European Business Wallets, which is set to be implemented by 2027.

Objective of the Commission’s proposal

The proposal aims to reduce administrative burdens for companies and strengthen the European single market. The European Business Wallet is a digital tool designed to simplify economic and administrative processes within the EU, particularly cross-border interactions with other companies and authorities. It is primarily intended to provide a reliable means of communication, especially between companies, to exchange documents securely, to sign them using a mandate- and role-based authorisation system, and to utilise digital attestations and certificates. This should enable all companies, especially small and medium-sized ones, to enjoy the benefits of more efficient procedures and a reliable digital framework.

Differences to the European Digital Identity Wallet

The proposed regulation builds on the existing European Digital Identity Wallet (EUDI Wallet) in compliance with the eIDAS Regulation, yet extends beyond its current scope. Whereas the EUDI Wallet was primarily designed as a personal application for mobile devices used by natural persons, the European Business Wallet is intended to be a digital infrastructure for legal entities, providing functions tailored specifically to the companies’ needs. Self-employed individuals and entrepreneurs will be able to expand their EUDI Wallet to include special features of the European Business Wallet, such as its secure means of communication and a company address book.

Operating principle and legal equivalence

According to the Commission's proposal, the European Business Wallet will facilitate the transfer of company data. Among other features, it will offer the option of using digital identity documents, electronic signatures and powers of attorney. The proposed regulation stipulates that actions and transactions carried out via a European Business Wallet shall be treated as legally equivalent to those carried out in person, on paper, or by other means or procedures. This principle of legal equivalence shall apply to actions resulting from the use of the core functions of a European Business Wallet. The core functions primarily include identification and authentication, signing or sealing, submitting documents, and sending or receiving communications. In addition, the establishment of a European digital business directory is intended to record wallet providers and offer a notification mechanism for relevant transactions. While the use remains voluntary for companies, public authorities are to be required to maintain a European Business Wallet themselves for use in administrative procedures.

Unresolved questions for the further legislative process

The current version of the proposed regulation raises a number of questions that will need to be answered during the further legislative process. The EU acquis provides valuable guidance on this, particularly Article 2(3) of the eIDAS Regulation regarding formal requirements, Article 10 of the Company Law Directive as amended by the Digitalisation Directive II, and Recital 9 of the Digitalisation Directive II regarding public preventive control. These provisions provide the basis for reliable registers, which in turn ensure transparency and mutual trust in company data.

In particular, and in contrast to Article 2(3) of the eIDAS Regulation, the proposed regulation does not explicitly exempt form requirements which are essential to ensure a system of public preventive control. This leaves the extent of legal equivalence vague, although the recitals emphasise that, for example, checks to ensure that the content of a document or the implications of signing a contract are known or understood should not be affected by the regulation. Nevertheless, the reliability of public registers and the integrity of legally relevant – and therefore requiring a specific form – processes depend also on the quality of identity verification. If identities are secured solely by digital access data, there is a high risk of misuse, for example in the event of the loss or unauthorised sharing of identification data. By ensuring a level of legal certainty unparalleled in other legal systems, the system of administrative, judicial and/or notarial preventive control also offers a unique selling point in international regulatory competition. The neutral legal advice provided by a public official serves as institutional protection for private autonomy. Alongside the notary's verification of legal validity, it significantly reduces both transaction costs and the risk of subsequent litigation, thereby providing considerable time and cost advantages in an international comparison. Moreover, notaries perform key control functions in anti-money laundering and the enforcement of sanctions regimes. These measures reduce the workload of courts, speed up access to justice, and provide the public with high-quality public goods in an efficient and cost-effective manner. None of this should be put at risk by introducing the European Business Wallet.

During the further legislative process, it should also be clarified that public registers are the only authentic sources of company data, in particular with regard to the company name, registered office, share capital and management. This would ensure that the European Business Wallet does not become a vehicle for circumventing preventive measures to combat crime, but rather an instrument for strengthening mutual, cross-border trust by transmitting reliable company data.

In addition to further considerations, it should also be critically examined whether public authorities should be required to have their own wallet. This would presumably result in increased administrative costs and would not benefit legal and economic transactions. Therefore, it would not be in line with the objective of the regulation. Instead, ensuring interoperability with existing digital communication channels would sufficiently enable the effective use of the European Business Wallet in economic transactions.

Significance for the notarial practice

Given the remaining questions, it is not yet possible to conclusively assess the significance of the European Business Wallet for notarial practice. In particular, it remains unclear exactly which features can actually be used in notarial procedures. One potential application might be the transfer of company data from public registers using the EU company certificate via the European Business Wallet, mainly for cross-border procedures. However, personal information such as proof of identity or power of representation – particularly the Digital EU Power of Attorney – should be stored in the EUDI wallet, which is designed for natural persons. Within a corporate setting, the natural persons involved as well as their power of representation are crucial for compliance with form requirements. The implied ‘anthropomorphisation’ of legal entities in the proposed regulation would not be conducive to notarial practice.

Outlook

The impact of the European Business Wallet on notarial practice will depend largely on how the outstanding legal and technical questions are addressed during the further legislative process. The progress of the deliberations in the European Parliament and the Council therefore still remains to be seen.

About the author

Dr. Moritz Blenk is a notary candidate in the district of the Brandenburg Chamber of Notaries and works as a legal advisor in the Brussels office of the German Federal Chamber of Notaries.