Founders and investors from Europe’s technology sector warned that the EU Inc project could lose its value if its core elements are weakened during the final negotiations. The project proposes creating a unified European legal form that would allow companies to incorporate within a single framework and operate across the 27 member states, rather than adding a new system on top of 27 separate national systems.
The warning came in a letter addressed to European Union policymakers and signed by a number of company founders and investors, including Daniel Ek, founder of Spotify, Prima Materia and Neko Health; Arthur Mensch, co-founder and CEO of Mistral; and Jarek Kutylowski, co-founder and CEO of DeepL, along with representatives of Accel, Index Ventures, Atomico, Revolut, Collibra, Pigment and others.
The European Commission presented the EU Inc proposal on March 18, 2026, following a grassroots campaign backed by more than 26,000 founders, investors and leaders in the European technology sector. The proposal includes a common corporate law framework, the possibility of fully digital incorporation within 48 hours, more flexible company rules, and a European employee stock option system.
Five points the signatories want to preserve
- Freedom to choose the registered office: Founders should be able to choose their legal headquarters in any member state without being required to move their operations there, with EU Inc companies fully recognized in the single market and protected against discrimination.
- Broad availability of the legal form: The campaign warns against limiting it to innovative companies, specific sectors, or companies below certain thresholds in terms of employee numbers or revenue.
- A single central register: The letter calls for an official, unified European register, rather than merely an interface connecting national registers, so that investors, creditors, banks and public authorities can access a single company record that meets uniform know-your-customer and beneficial-ownership standards.
- Unified stock options: The campaign proposes that employees should not be taxed until they actually sell the shares, with a safe valuation rule when the option is granted, so that no tax arises on gains that have not yet been realized.
- Continued local application of employment and tax laws: Employee protections should remain linked to their actual place of work, and tax obligations should reflect the location of the economic activity. The letter emphasizes that EU Inc is a simplification of corporate law, not a means of circumventing national social or financial obligations.
What changes in practice?
The importance of the project, according to the facts contained in the letter and the proposal, lies in its attempt to reduce the legal and administrative friction faced by companies operating across European borders. However, the framework’s usability will depend on whether it provides a genuine European register and workable rules, or remains tied to national exceptions and parallel procedures.
Negotiations are accelerating with 100 days remaining until the target date. The European Parliament’s Legal Affairs Committee is scheduled to consider the amendments during September, while representatives of the member states are holding technical negotiations in preparation for a ministerial discussion in the Competitiveness Council during the same month. After the Parliament and the Council determine their positions, they will have to negotiate a final joint text.
certi.news analysis: The real change has not yet been decided; the proposal exists, but its practical impact will depend on the wording of the final text. The letter shows that the points of disagreement do not concern the speed of digital registration alone, but also the extent to which the register is unified, the breadth of eligibility, and the system’s compatibility with employment and tax laws in the countries where employees and companies operate. The outcome therefore remains open until negotiations between the European Parliament and the member states conclude.