Before the United Kingdom left the European Union, British businesses and organisations had access to a unique legal structure known as the European Economic Interest Grouping (EEIG). These groupings enabled firms across different EU member states to collaborate on shared projects while retaining legal independence and operational flexibility.
Following Brexit, the legal landscape changed significantly. EEIGs could no longer be supported under EU law in the UK, prompting the need for a new domestic equivalent. As a result, the UK Economic Interest Grouping (UKEIG) was introduced to ensure continuity for existing EEIGs and to preserve the benefits of cross-organisational cooperation within the UK’s legal framework.
This post explores the key changes that occurred during the transition from EEIG to UKEIG and what they mean for existing and future groupings.
What Was an EEIG?
An EEIG was established under Council Regulation (EEC) No. 2137/85, which came into force in 1989. It allowed two or more entities from different EU Member States to collaborate through a joint legal entity without creating a formal company or partnership. These groupings were commonly used in:
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Research collaborations
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Joint procurement initiatives
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Shared consultancy practices
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Regional development projects
EEIGs were widely praised for their flexibility and relatively light regulatory burden. Importantly, they were designed to be fiscally transparent, with no intention of generating profits for themselves. Instead, they existed to benefit their members by coordinating shared functions and pooling resources.
The Legal Impact of Brexit
The UK officially left the European Union on 31 January 2020, with the transition period ending on 31 December 2020. At that point, EU law, including the regulations governing EEIGs, ceased to apply in the UK.
Without action, this would have left UK-registered EEIGs in legal limbo. To address this, the UK government introduced The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018, which included provisions for converting EEIGs into UKEIGs on 1 January 2021.
This automatic transition ensured that EEIGs registered in the UK could continue to operate under domestic law without needing to dissolve and reform.
What Is a UKEIG?
A UKEIG is a UK-only version of the EEIG. It is a body corporate with legal personality, allowing it to:
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Enter into contracts
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Own assets
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Employ staff (up to a maximum of 500)
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Be held liable in its own name
The primary purpose remains the same: to facilitate or develop the economic activities of its members. However, it must not act for profit itself, and all benefits must pass through to the members directly.
The UKEIG must be registered with Companies House and have a registered office within the UK. It is subject to domestic legislation rather than EU regulations.
Key Differences Between EEIG and UKEIG
While the UKEIG closely mirrors the EEIG in purpose and structure, several important changes arose from the post-Brexit legal environment:
1. Jurisdiction
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EEIGs operated under EU law and were recognised across all Member States.
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UKEIGs exist solely under UK law and do not benefit from automatic recognition or legal standing in the EU.
This means that UKEIGs cannot be registered or operate freely across borders in the same way that EEIGs once did. New cross-border collaborations now require separate arrangements or dual structures.
2. International Membership
UKEIGs can still include foreign members, including EU-based companies or organisations, but these members may need additional legal arrangements to operate or be recognised abroad.
The removal of mutual EU recognition has introduced a layer of complexity to international cooperation.
3. Naming and Branding
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EEIGs used the suffix “EEIG” in their name.
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All converted UK groupings must now use the suffix “UKEIG”, and this must appear on all official documents, contracts, and communications.
This change also affects branding and requires updates to websites, stationery, and legal templates.
4. Regulatory Oversight
Under the EEIG model, regulatory compliance was tied to both domestic and EU frameworks. The UKEIG is regulated solely by Companies House under UK law.
This simplification has benefits for UK-based groupings, but also reduces legal coherence for entities with activities across Europe.
5. Legal Continuity
All existing EEIGs registered in the UK were automatically converted into UKEIGs on 1 January 2021. This legal continuity included:
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Retention of registration numbers
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Preservation of contracts and liabilities
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Continuation of governance structures
No action was required by the groupings at the time of conversion, although updates were encouraged to reflect the new name and structure.
Administrative Adjustments for Converted Groupings
For EEIGs that became UKEIGs, several administrative updates were needed following the transition:
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Name change in Companies House records and on public materials
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Notification to partners and funders about the change in legal form
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Review of cross-border arrangements, especially if activities extended into EU territories
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Legal advice to assess ongoing eligibility for funding or collaborative projects involving EU institutions
While the transition was designed to be as seamless as possible, these adjustments have proven essential for continued credibility and operational stability.