US EditionEU Inc proposal seeks to rival US in innovation by easing startup creation
- On Wednesday, the European Commission unveiled EU Inc, allowing registration within 48 hours online for less than 100€, to simplify cross-border company formation.
- Fragmentation in the single market and high internal barriers limit business growth, with the International Monetary Fund estimating a 110% tariff on services; Enrico Letta's 2024 report revived efforts for a unified business code after earlier failed attempts.
- The proposal would harmonise certain corporate rules by creating an optional 28th regime, digitising share transfers, offering simplified insolvency for innovative start-ups, and aligning taxation of employee stock options.
- The Commission estimates companies could save between €328m and €440m over 10 years, foresees 66,000 incorporations annually after 10 years, and has asked the European Parliament and Council of the EU to approve by end of 2026.
- Critics warn many EU member states resist ceding control on bankruptcies, taxation, and employment, limiting harmonisation; Luis Garicano said deferring to national law will create 27 different 28th regimes, while Reinhilde Veugelers called past reforms complex and ineffective.
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71 Articles
ANALYSIS. The EU is reaching out to the startup world with the new “EU Inc” proposal. Now the regulations for starting a business are to be simplified. But they miss the region's most pressing problems.
The European Union is preparing a new legal regime, "EU Inc", which will allow the opening of an online comprehensive firm for at least 48 hours at a cost of less than EUR 100 and no minimum social capital.The company will then be able to operate in all 27 Member States without repeating national administrative procedures. The EU Article comes with new rules for companies. Any company can be set up in only 48 hours with a maximum cost of EUR 100…
Innert 48 hours digitally set up a company for the whole EU: with "EU inc." start-ups should be able to grow faster.
The European Commission presented a proposal on Wednesday by which companies could be fully established online, at a maximum of 48 hours, without minimum social capital and at a cost of less than 100 euros, under the new ‘EU Inc’ model, on which USR Member Claudio Nasui says that it is ‘actively inverse’ towards Romania’ and that it could reduce bureaucracy for entrepreneurs.
EU Inc proposal seeks to rival US in innovation by easing startup creation
The European Commission proposed on Wednesday allowing firms to set up in as little as 48 hours and operate according to a single set of rules across the 27-nation EU in a bid to narrow the gap with the United States in innovative startups.
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