Lawmakers risk losing a rare opportunity to ease cross-border friction for companies across the bloc if they allow the EU Inc proposal to be weakened, founders and investors warned.
An open letter released on Thursday gathered a who’s who of Europe’s startup community to press negotiators to keep the new EU-wide company statute intact. The campaign behind the measure seeks a single corporate form that would let firms incorporate under the same rules across member states, a concept supporters liken to a European equivalent of the Delaware C Corp.
Supporters say the draft has won backing from top EU institutions but caution that dilution of core provisions could render the new status unusable. They argue the statute could remove much of the fragmentation that now complicates cross-border growth, unlock investment and spur entrepreneurship if its central features survive the legislative process.
As the text moves between the European Parliament and the Council, national interest groups have already stepped in. Germany’s association of notaries has publicly criticised parts of the European Commission’s plan, illustrating the familiar tug of competing domestic rules. Negotiators face roughly 100 days before EU institutions break for their winter recess, a timeline supporters highlighted to underline the urgency.
The letter pressed negotiators on technical but decisive points, including the creation of a single central registry for EU-incorporated firms and tax treatment that would delay employee income taxation on stock options until those options are actually sold. Backers warned those details will determine whether founders adopt the new form or ignore it.
Signatories include prominent investors such as Accel partner Sonali De Rycker, Sequoia partner Michael Moritz and Atomico founder Niklas Zennström, alongside founders from unicorns including Alan, ElevenLabs, Lovable, Mistral and Synthesia. The campaign noted that some endorsing companies have headquarters in the United States, implying the proposed statute could shift incorporation incentives back toward Europe.
Supporters have flagged that scrutiny will remain intense. In 2024, Index Ventures partner Martin Mignot cautioned that "the devil is in the details," a sentiment the current letter reinforces as talks continue. The next milestone is the Parliament and Council settling a final text before the institutions adjourn for winter, and backers have signalled they will keep up pressure until negotiators preserve the clause set they believe are essential.
