FAQ
This FAQ sets out EU-INC’s positions on the European Commission’s proposal for an EU Inc – a pan-European company form (COM(2026) 321). It explains what the proposal does, where we believe the final text should be strengthened, and what it would change for founders, investors, and policymakers across the 27 Member States.
It is not legal advice.
ABOUT EU–INC
01
What is EU–INC?
A grassroot policy solution advocating for a standard for startups. After one and a half year of campaigning the EU Commission announced their solution proposal. Confusingly also named "EU Inc".
02
Are you a part of the Commission and their work unit?
No, the EU–INC campaign is a grassroot effort by the European startup ecosystem. Spearheaded by a small core team. And supported by the who-is-who of European startups.
We worked on a full legal proposal how to implement EU–INC. Written together with the leading startup law firms in Europe. You can still read it here.
We advised the Commission over the last year but they ultimately went with a different solution, that aims for the same outcome. Instead of introducing a new regime they allow founders/investors to converge around a few standard countries.
03
Why are standards needed for startups?
Less than 18% of first-round European investments are pan-European due to legal system complexity. The initiative would standardise investment processes, unify the ecosystem, harmonise stock options, simplify cross-border employment, and position Europe as a leading innovation hub.
Our founders need to compete globally from day one. They should be able to raise money globally from day one.
04
How likely is this to succeed?
Political leaders including Mario Draghi, Ursula von der Leyen, and Enrico Letta have expressed support. It's currently in a feedback and voting phase with the Commission.
Success isn't getting the law written but to ensure it's actually useful.
For this we require community mobilisation to demonstrate this is the priority solution.
05
How can I help?
Help us ensure everyone in the tech, startup and policy ecosystem knows about EU–INC. Founders, investors, politicians, press, national startup associations, and policy groups.
Support us on Twitter/X and LinkedIn, and share our updates and news. Write about the critical necessity of EU–INC and a ambitious implementation of Brussel's current proposal. The next phase really matters. We need to get the details right.
Our logo and social media images are available here.
You want to make Europe a better place for startups? This is our chance.
06
I’m a policymaker and would like to help
EU–INC has already reached the European Commission. Now the proposal moves into negotiations between the Council and Parliament.
Policy makers, MEPs, ministry officials, and national startup associations can make a real difference in the next few months. Talk to your colleagues. Push for free choice of registered office. Don't let the one clause that makes this useful get removed.
Reach out to the policy team at policy@eu-inc.org.
07
Why aren’t existing company structures suitable for startups?
Current EU structures like the European Company (SE) impose high capital requirements, complex formation processes, and administrative burdens that are unsuitable for startups.
WHAT WE ARE ASKING FOR
01
Protect free choice of registered office
This is the core mechanism behind this European “Delaware moment”. It is the one thing that makes the EU Commission a potential solution for the tech sector.
The seat of registration has to be able to be in a different country than the operating HQ. That’s the whole point.
A company should be able to:
incorporate in one Member State and use its standard documents to fundraise
operate in another and hire and pay taxes there locally
continue doing this and scale across Europe without reincorporating every time
All of this is within the proposal and also within current European law. The proposal just enables it properly.
The promise by the president was not “simplification”.
The promise was standardization.
02
Build a central EU registry
A real EU–INC needs:
one modern digital registry with strong KYC and AML standards
to avoid bypassing local standards and enforce transparent beneficial ownership
48-hour incorporation and one-click bank account creation
This ensures we can do fully digital processes without worrying that some Member States’ weaker standards can be used to sidestep stricter rules in others. This also means countries would have no need to manually verify those digital standards through service providers nor notaries.
It would also enable founders to one-click open bank accounts and it would reduce the paperwork of funding rounds dramatically (eg no need to resubmit every KYC document at every round).
03
Keep EU–INC open to all companies
There should not be any limit to who can use the entity. Our goal is new GDP-driving companies. And founders and markets decide what innovation looks like. Not politicians. Not legal proposals.
Any artificial size caps or revenue thresholds would force successful companies back into legacy national structures exactly when they begin scaling. This would cause uncertainty for founders and investors and jeopardise the international credibility of such structure.
Delaware does not ask how big or clever your company is to act as infrastructure for you. Neither should Europe’s alternative.
04
Keep employment and taxes local
The goal of our EU–INC campaign is not to avoid local obligations.
EU–INC is not meant as a tax loophole. Taxes follow where the company operates and is administered, not where it is registered. The registered office does not override national tax rules.
EU–INC does not aim to replace local employment law. Employment law follows the country where employees work, not where the company is registered.
If you hire in Germany, German labor law applies to these workers. If you hire in Poland, Polish labor law applies to these workers. Neither should Polish law apply to German workers, nor German law to Polish workers. No matter where you are incorporated.
In practice this means e.g. that German co-determination should still be available to German employees in context of German operations in EU–INC incorporated outside of Germany. But also those German employees and a their potential worker council should not have authority over other employees in other countries.
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I would love to learn more
We did a full legal deep-dive and gap analysis on the Commission's proposal with Dentons. You can read it here (ADD LINK).
We also did a very long FAQ document answering the most common questions about implementation details in the EU–INC. You can find it here. (LINK ADD)
IMPRINT
contact@eu-inc.org
policy@eu-inc.org
eu-inc.org · Factory Lisbon
Av. Infante Dom Henrique 143
1950-406 Lisboa, Portugal
EU–INC · 2026 · A VOLUNTEER-DRIVEN CAMPAIGN
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