European start-up founders and venture capitalists have urged lawmakers not to dilute plans for an EU-wide company structure, warning that weakening its key provisions could make the proposed EU Inc framework unusable.
In an open letter, prominent figures from the bloc’s technology sector called on the European Parliament and the Council of the European Union to preserve the central elements of the proposal as negotiations over the final legislation continue.
EU Inc is intended to create a common company statute that would allow businesses to incorporate under one framework and operate more easily across member states. Supporters see it as a potential European equivalent of the Delaware C corporation, a structure widely used by US technology companies.
The campaign’s organisers say the system could reduce the legal and administrative barriers created by differing national rules, helping companies attract investment and expand across Europe. They said there were about 100 days left before the EU institutions’ winter recess, increasing pressure to reach agreement.
Among the details highlighted in the letter are the creation of a single central registry and rules ensuring employees are taxed on stock options only when they sell or otherwise dispose of them.
Supporters argue that such provisions are not merely administrative technicalities but could determine whether founders and investors choose to use the new company form. Martin Mignot, a partner at Index Ventures and an EU Inc supporter, previously warned that “the devil is in the details” as the proposal moved forward.
The initiative has faced opposition from national professional groups during the legislative process. Germany’s notaries’ association has criticised parts of the European Commission’s proposal, while discussions between the Parliament and the Council continue.
The latest letter has been signed by investors including Accel partner Sonali De Rycker, Sequoia partner Michael Moritz and Atomico founder Niklas Zennström. It also carries support from founders linked to technology companies including Alan, ElevenLabs, Lovable, Mistral and Synthesia.
EU Inc advocates say the backing from leading European technology businesses underlines the importance of a framework that would allow more companies to be built and scaled within the bloc, rather than incorporating or moving their headquarters elsewhere.
