Europe’s startup founders and investors today released a letter warning that EU Inc, the proposed European company statute designed to let businesses incorporate under one common framework and operate across all 27 Member States, could become unusable if its central features are weakened during the final negotiations.
In the letter addressed to policymakers, signed by Europe’s leading founders and investors, the signatories argue that the European Parliament and Member States must ensure that the final legislation delivers a genuinely European company form, rather than adding another layer on top of 27 national systems.
The letter asserts:
“If we get EU Inc right, it will remove much of the friction and fragmentation that continue to throttle European companies, unlock investment and spur a new wave of entrepreneurship.
You will decide whether EU Inc becomes Europe's economic engine or a legal structure so diluted that nobody uses it.”
Progress made, but critical gaps remain in the Commission’s EU Inc proposal
The European Commission presented its EU Inc proposal on 18 March 2026, following a grassroots campaign backed by more than 26,000 founders, investors, and other leaders across European tech, and called on the European Parliament and Council to reach an agreement by the end of the year.
The proposal includes a common corporate framework, fully digital incorporation within 48 hours, more flexible company rules and a European employee stock-option scheme.
It is a major step forward, but several of its defining elements now face pressure as Parliament and Member States negotiate the final text.
Five critical areas
The EU–INC campaign is calling on policymakers to preserve the proposal’s ambition and strengthen it in five critical areas:
Free choice of registered office:
Founders must be able to choose their corporate home in any Member State without being required to locate their operations there. EU Inc companies must be fully recognised across the Single Market, with non-discrimination explicitly prohibited.
Broad access:
EU Inc must not be restricted to “innovative companies,” particular sectors, or businesses below arbitrary headcount or revenue thresholds. A company form available only to a shifting, contested subset of businesses cannot become the trusted European standard founders and international investors need.
One central registry:
EU Inc needs a single, authoritative European register—not merely an interface layered over 27 national systems. Investors, creditors, banks, and public authorities should be able to consult one company record that meets harmonised KYC and beneficial-ownership standards across the EU.
Standardised stock options:
Employees should be taxed only when they actually dispose of their shares, supported by a safe-harbour valuation rule at grant. Nobody should face a tax bill for gains they have not realised.
Local labour law and taxes:
Employment protections must continue to apply where employees actually work, while tax obligations should reflect where economic activity takes place. EU Inc is a corporate-law simplification—not a route around national social or fiscal obligations.
What happens now?
Negotiations are now accelerating on both tracks with 100 days left to meet the deadline. The Parliament’s Legal Affairs Committee will consider amendments in September, while Member State representatives are scheduled to hold a series of technical negotiations ahead of a ministerial discussion at the Competitiveness Council later that month.
Once Parliament and the Council have established their respective positions, the institutions must negotiate a common final text. The coming months will therefore determine whether EU Inc becomes a genuinely European standard, or another promising initiative compromised by national exceptions and administrative complexity.
Broad grassroots support
Signatories to the letter include:
- Carolina Brochado — Partner, Head of EQT Ventures and Head of EQT Growth US
- Stijn Christiaens — Founder and Chief Data Citizen, Collibra
- Éléonore Crespo – CEO and Co-founder, Pigment
- Tomas Cupr — CEO and Co-founder, Rohlik
- Judith Dada — Co-CEO, Langdock; Senior Partner, Visionaries Club
- Sonali De Rycker — Partner, Accel
- Daniel Ek — Founder of Spotify, Prima Materia and Neko Health
- Victor Englesson — Partner, EQT; Co-Head of the Scaleup Europe Fund
- Carlos Eduardo Espinal — Managing Partner, Seedcamp
- Alex Ferrara — Partner, Bessemer Venture Partners
- Jan Hammer — Partner, Index Ventures
- Joe Heneghan – CEO, Revolut Holdings Europe
- Brent Hoberman — Co-Founder & Chairman, Founders Forum Group
- Vit Horky –– Founder & General Partner, United Founders
- Saul Klein — Co-founder of LocalGlobe & Phoenix Court
- Jarek Kutylowski — Co-Founder & CEO, DeepL
- Miki Kuusi — CEO of Deliveroo & founder of Wolt
- Enrico Letta – Former Prime Minister of Italy
- Mette Lykke – CEO and co-founder, Too Good To Go
- Kitty Mayo — CEO, Project Europe
- Arthur Mensch — Co-founder and CEO, Mistral
- Martin Mignot — Partner, Index Ventures
- Rafal Modrzewski — CEO at ICEYE
- Stef van Grieken — Co-Founder & CEO, Cradle
- Roxanne Varza — Director, Station F
- Niklas Zennström — Founder & CEO, Atomico
Learn more at eu-inc.org and sign the letter.
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