Position Paper

This is the core mechanism behind this European “Delaware moment”. It is the one thing that makes the EU Commission's proposal a potential solution for the tech sector. The seat of registration is essential to create a real standard. A company should be able to incorporate in one Member State and use that standard to fundraise, operate, hire, and pay taxes in another country without reincorporating to scale every time. All of this is already within European law. The proposal just enables it properly. The promise by President von der Leyen was not “simplification”. The promise was standardization.

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 or notaries. It would also enable founders to open bank accounts with one click and dramatically reduce the paperwork of funding rounds (e.g., no need to resubmit every KYC document at every round).

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 a structure. Delaware does not ask how big or clever your company is to act as infrastructure for you. Neither should Europe’s alternative.

The goal of our EU–INC campaign is not to avoid local obligations. It's not meant as a tax loophole. Taxes follow where the company operates and is administered, not where it is registered. The registration seat 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. Neither should Polish law apply to German workers, nor the other way around. No matter where you are incorporated. Therefore, for example, German co-determination applies to employees in Germany, even if the EU-INC is registered in Estonia. Conversely, employees in other countries are not subject to the authority of German employees or their worker council.