26,000+ FOUNDERS, INVESTORS, OPERATORS. 27 COUNTRIES.
We went through Brussels' proposal with legal experts. The conclusion is clear:
WHAT IT’S NOT
The 28th regime we campaigned for
One harmonized European startup entity
A new EU company law or court system
WHAT IT CAN BE
A plug-in into every country’s legal system
A path to a pan-European standard
Only if implemented correctly
Several lobby groups are pushing to remove key aspects that can make this work. Help us get this right by July 16
– not fragmented into 27 versions.
NOW IS OUR WINDOW TO ACT
Don't water down EU Inc into 27 versions. It can be Europe's biggest competitiveness win.
The startup ecosystem needs to be loud before July 16.
It's Europe's once-in-a-generation shot at real competitiveness – and it won't come around twice.
Post on LinkedIn. Ask for One Europe. One Standard. Tag your MEPs and heads of state — and make it clear that founders need a usable European standard, not fragmentation.
Your MEPs: René Repasi, Axel Voss, Pascal Canfin, Arash Saeidi, Sergey Lagodinsky, and Mario Mantovani
How Brussels' proposal can work
5 Non-Negotiables
01
FREE CHOICE OF REGISTRATION SEAT
Founders choose where to incorporate – independent of where they operate, hire, and pay taxes.
02
ONE CENTRAL REGISTRY
One digital registry. Strong KYC/AML/UBO enforcement. Fully digital, 48-hour incorporation. One-click bank account creation.
03
ACCESS FOR ALL COMPANIES
No size caps. No revenue thresholds. Founders and markets decide what innovation looks like – not politicians.
04
STANDARDIZED STOCK OPTIONS
A common EU–ESO with deferred taxation and a safe-harbor valuation rule.
05
LOCAL LABOUR LAWS & TAXES
Labor and tax obligations follow real activity, not the company's registered address.
WHAT MATTERS MOST
Free choice of registration seat
As defined in Brussels’s current proposal, founders are free to choose where they incorporate, independently of where they operate from.
This would allow individual countries to compete to become a de facto standard place of registration for startups. This is very similar to how Delaware became a standard in the US.
Politicians would not mandate the standard. But founders, investors, and lawyers will converge around the countries that work best for them.
Without free choice of registration seat, the proposal becomes 27 new national regimes, with a shared logo – fragmentation, but with slightly better branding.
And useless for founders who need standards to fundraise globally.
WHAT EU–INC DOES NOT CHANGE
Local rules still apply
The goal of our EU–INC campaign is not to avoid local obligations.
EU–INC is not 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 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.
WHAT IS AT RISK NOW
Brussels’ proposal now moves into negotiations between the Council and Parliament.
Several stakeholders are pushing to remove free choice of registration seat, arguing it enables “forum shopping”. It does not enable it. There is European anti-abuse law to prevent it.
The answer to this concern is to ensure local tax & employment law is respected, to introduce strict KYC/AML/UBO standards and modern digital infrastructure - not removing key elements that makes this useful.
“Continental scale is our greatest asset in a world of giants.”
URSULA VON DER LEYEN — PRESIDENT OF THE EUROPEAN COMMISSION
We need your help!
This next phase
matters.
Talk to your policymakers. They are not from the tech industry. Explain why One Europe. One Standard is needed and why the proposal can't be diluted. The startup ecosystem needs to be loud before July 16 - it's our window to act.
If you build, invest, or operate in Europe:
Post about EU–INC
Talk to your policy makers (find them at the top of this page ↑)
Push for these 5 non-negotiables
EU-INC logo & social images are available here
THE FULL LEGAL PICTURE
We conducted a comprehensive legal analysis of Brussels’ proposal, with support from law firm Dentons & legal experts across Europe.
Here’s what we found:
It can work — but only if implemented correctly.
It must be strengthened, not fragmented.
It's NOT a standard without the free choice of registration seat.5 non-negotiables must stay
Tax and labour law follow real activity, NOT where the company is registered.