Simplicity Is Key

The simplicity of the plan is key. Currently, anyone wishing to operate in multiple EU member states often has to set up a separate company in each member state, such as a subsidiary. Each member state has its own conditions and rules regarding matters such as start-up capital and registration. An EU Inc. would greatly simplify this process through a harmonized set of rules. Choosing an EU Inc. is optional.

Fast and affordable

The incorporation of an EU Inc. can be completed entirely digitally within 48 hours for less than €100. There is also no capital requirement. Furthermore, a central EU registry containing company data will be introduced, and companies will automatically receive tax and VAT numbers upon registration. Bankruptcy proceedings will also be conducted entirely digitally. 

Stock option plans

EU Inc. companies can launch stock option plans for their employees, with tax obligations to the tax authorities only arising upon the sale of the options. Investing is simplified by eliminating formal procedures and intermediaries in share transactions. Member states can decide for themselves whether to grant EU Inc. access to the stock market, whereby protection can be offered against hostile takeovers.

Several new initiatives

The EU announced several new initiatives, such as digitizing communication beatween businesses and the government as much as possible. There are also plans to establish separate judicial chambers for EU Inc. companies. Furthermore, the goal is to enable fully cross-border remote work for startups and scale-ups. Other initiatives include improving access to capital and evaluating European venture capital funds, creating equal tax frameworks, and reducing administrative burdens.

Implementation via regulation

The EU Inc. will be introduced via a regulation. The advantage is that this will have direct effect in all member states. A disadvantage is that unanimous support is required for a regulation. This carries the risk that countries will seek to add exceptions during the negotiations. The goal is to finalize decision-making on the EU Inc. by 2026.