European founders and investors are urging policymakers to preserve key parts of the proposed EU Inc corporate framework as negotiations over the final legislation continue. The EU Inc campaign argues that weakening elements such as a central company registry and common stock-option rules could leave Europe with a system that founders are unlikely to use.
The group made its case in a new open letter to European policymakers, with about 100 days remaining before European institutions enter their winter recess. EU Inc is designed to provide companies with a common corporate framework for incorporating and operating across European Union member states.
The proposal is sometimes compared with the Delaware C Corporation structure commonly used by U.S. startups. Its supporters want companies operating across Europe to avoid having to work through different corporate systems in each country.
Central Registry and Stock Options Remain Key Issues
The European Commission’s EU Inc proposal would create an optional harmonized corporate structure available across the bloc. However, negotiations involving the European Parliament and Council are continuing, while national groups have raised objections to parts of the framework.
Germany’s notaries are among those that have criticized aspects of the Commission’s plan. EU Inc supporters are concerned that amendments during negotiations could result in different implementations across member states instead of a consistent European standard.
The campaign is particularly pressing lawmakers to retain one central registry for EU Inc companies. Supporters argue that companies should have one digital interface for registration and corporate information instead of dealing separately with national systems.
Employee stock options are another priority. EU Inc advocates want employees to pay tax when they dispose of their options rather than when those options are initially granted, reducing the possibility of a tax obligation before employees receive proceeds from their shares.
Concerns over the details have existed since the campaign’s early stages. Index Ventures partner Martin Mignot told TechCrunch in 2024 that supporters would closely watch how the individual provisions developed.
Founders and Investors Back the Campaign
The latest letter has support from investors including Accel partner Sonali De Rycker, Sequoia partner Michael Moritz and Atomico founder Niklas Zennström. EU Inc’s public supporter list also includes founders, executives and investors from companies across Europe’s technology sector.
Promoters highlighted founders behind companies including Alan, ElevenLabs, Lovable, Mistral and Synthesia among those supporting the campaign. Some of these companies currently maintain headquarters in the United States despite having European founders or operations.
The European Commission presented its EU Inc proposal in March 2026, calling for faster digital registration, simplified corporate procedures and common rules that companies could use across the EU. Parliament, the Council and the Commission are now working toward the final legislation.
Featured image credits: Compete
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