A coalition of prominent European startup founders and venture capitalists has issued an open letter urging EU lawmakers to preserve the essential features of the EU Inc proposal, a new company statute intended to create a unified corporate framework across Europe. The initiative aims to provide startups with a streamlined incorporation process similar to the Delaware C Corp model in the United States, enabling companies to operate seamlessly across EU member states.
The letter, released on Thursday, highlights concerns that ongoing negotiations in the European Parliament and Council could dilute the proposal, rendering it ineffective. Advocates emphasize that maintaining a single central registry and ensuring employees are taxed only upon the actual disposal of stock options are critical details that distinguish a usable corporate form from one that founders would avoid.
The campaign, known as EU Inc, has garnered support from top EU authorities and influential investors, including Accel’s Sonali De Rycker, Sequoia’s Michael Moritz, and Atomico’s Niklas Zennström. Founders from successful startups such as Alan, ElevenLabs, Lovable, Mistral, and Synthesia have also endorsed the initiative. Some of these companies are headquartered outside Europe, underscoring the campaign’s message that a robust EU Inc framework could help retain European startups and investment within the bloc.
With approximately 100 days remaining before the European institutions enter their winter recess, the letter stresses the urgency of finalizing legislation that can reduce the fragmentation and administrative friction currently hindering European companies. The campaign warns that national lobbying efforts, including opposition from Germany’s notaries, risk weakening the proposal’s impact.
The EU Inc statute represents a significant opportunity to foster entrepreneurship and attract investment by simplifying cross-border business operations in Europe. Its supporters remain vigilant as negotiations continue, aware that the final details will determine whether the initiative can fulfill its promise.