The Council of the European Union has reached a negotiating mandate for the EU Inc. framework, a proposal introduced on March 18, 2026. The agreement follows pressure from a campaign backed by over 26,000 startup founders and investors who advocated for harmonized corporate rules.
The framework retains the European Employee Stock Option Plan (EU-ESO), allowing tax deferral until shares are sold. However, eligibility is now restricted to companies with fewer than 750 employees and an annual turnover not exceeding €150 million, down from previous thresholds of 1,000 employees and €450 million.
Several key proposals were removed, including the central European company register, real-time tracking of registrations, and a dedicated insolvency chapter. Companies will continue to operate under national insolvency rules and existing national tax systems, as the framework does not create a unified European tax regime.
The legislative process is ongoing, with the European Parliament yet to establish its position. Following potential interinstitutional negotiations, the Council proposes a 21-month implementation period. As of October 26, 2026, the file is awaiting a committee decision.
