European startup founders and venture capitalists have issued an open letter urging lawmakers to maintain the integrity of the proposed EU Inc corporate status. The initiative aims to create a unified company framework across the European Union to reduce operational friction and fragmentation.
Supporters emphasize the need for specific features, including a centralized registry and tax rules that defer employee stock option taxation until the point of disposal. Proponents argue these technical details are essential for the framework to be viable for businesses.
The campaign faces opposition from national lobbies, including German notaries who have criticized parts of the European Commission’s proposal. Negotiations between the European Parliament and the Council are currently ongoing to finalize the legislative text.
The letter features signatures from prominent investors, such as Sonali De Rycker of Accel, Michael Moritz of Sequoia, and Niklas Zennström of Atomico. Founders of companies including Alan, ElevenLabs, Lovable, Mistral, and Synthesia also endorsed the call.
Policymakers have approximately 100 days before the winter recess to conclude the negotiations. Supporters believe the successful implementation of EU Inc will help unlock investment and encourage a new wave of entrepreneurship within the bloc.
