Today, company representation remains complex, particularly in cross-border contexts, due to differences in national authorization rules and validation procedures. This can create uncertainty for parties relying on individuals acting on behalf of a company.
EU Business Wallets (EBW), supported by the EU Digital Identity Wallet (EUDIW), have the potential to improve this situation.
By increasing the reliability and transparency of mandates and by enabling secure and verifiable digital representation, such as powers of attorney and representation rights, EBWs can provide greater assurance that an individual is authorized to act on behalf of a company for specific types of activities. Through features such as secure identification, digital mandates, and verifiable links between natural and legal persons, wallets can help reduce uncertainty and administrative effort and give clear insight into what type of actions a representative is allowed to take. While not resolving all cross-border differences that have historically proven to be difficult to fully harmonize, they can support a more consistent and trustworthy approach to company representation across the EU.