European Startup Leaders Push for Strong EU Inc Corporate Statute
An open letter signed by prominent founders and investors urges EU lawmakers to preserve the core features of the proposed EU Inc company status. They warn that weakening key provisions could make the framework unusable. The letter emphasizes the need for a central registry and fair taxation of stock options.
The open letter arrives as EU Parliament and Council negotiate a final text, with roughly 100 days left before the winter recess. National lobbies, such as Germany's notaries, have already criticized the Commission's proposal, prompting the campaign to stress that technical details like a single central registry and deferred taxation on stock options are crucial for adoption.
The campaign has attracted high-profile backers, including investors from Accel, Sequoia, and Atomico, alongside founders of unicorns like Mistral and ElevenLabs. Notably, several of these companies are currently headquartered in the US, a fact the letter implicitly uses to argue that a robust EU-wide statute could reverse this trend.
A robust EU Inc statute could significantly reduce cross-border legal hurdles for startups, potentially enabling faster scaling and easier access to pan-European capital. Founders and employees may benefit from simplified incorporation and clearer stock option tax treatment, while investors could see a more unified market. However, if national interests dilute the framework, the intended economic boost may fail to materialize, leaving Europe's startup ecosystem fragmented and less competitive globally.