One of the fundamental principles of the Union is free movement of capital. The capital represents resources used for investment or capable of being invested, able to generate income. The concept of capital includes securities, direct investment, financial loans and credits, shares, bonds and other debt instruments. Free movement of capital is governed by Articles 56 par. 1 and Articles 57 up to 60 EC. The internal market project has led to the enactment of secondary legislation regarding free movement of capital and to the inclusion of provisions related to free movement of capital into the EC Treaty as part of the Maastricht amendments. This paper examines EU law concerning credit institutions, companies and the categories of operations performed by those economic organizations concerning circulation of capital in the EU.