European startup founders and investors have issued a warning regarding the EU Inc proposal, a corporate statute intended to unify business operations across all 27 Member States. The signatories argue that if the proposal's core features are diluted during final negotiations, the resulting legal structure could become unusable for businesses.
The European Commission introduced the EU Inc framework on March 18, 2026, following support from over 26,000 industry leaders. The proposal aims to enable digital incorporation within 48 hours, provide flexible company rules, and establish a European employee stock-option scheme.
The coalition identifies five critical areas for the legislation: free choice of registered office, broad access for all company types, a single central registry, standardized stock option taxation, and the maintenance of local labor and tax obligations. They emphasize that the framework must avoid adding layers to existing national systems.
Negotiations are currently accelerating with a 100-day deadline to reach an agreement. The European Parliament's Legal Affairs Committee is reviewing amendments this September, while Member State representatives prepare for technical discussions at the Competitiveness Council.
