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The EU’s work on a brand-new, pan-European company structure – EU‑INC – has drawn strong backing from the tech ecosystem. It has been described as one of the most significant changes for entrepreneurs, scaleups and investors in years. But what does it mean in practice, and how might it affect ambitious companies aiming to grow across Europe?
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A clear signal from the EU – applauded by the tech community
When European Commission President Ursula von der Leyen spotlighted EU‑INC as a priority at the World Economic Forum in Davos, she sent a clear message: starting, running, and scaling a business must become simpler in Europe. The initiative is framed as a voluntary “28th Regime” – a single, harmonised option alongside national systems – with 48-hour, fully online incorporation and a uniform capital regime across the EU, so companies can operate and raise finance seamlessly across Europe.
Reactions from the startup community have been unusually aligned: this is a long‑awaited step towards a more competitive European market.
Sofie von Stapelmohr, Partner and Authorised Accounting Consultant at Grant Thornton and the firm’s tech industry lead, has followed many companies from startup stage to international success:
“What makes EU‑INC so promising is that it is grounded in entrepreneurs’ day‑to‑day challenges. It would not only reduce administrative burdens – it would move Europe towards an environment where growth, pace and innovation are not held back by unnecessary obstacles.”
Why EU‑INC has been so eagerly awaited
Investors and startups – particularly in tech – have long grappled with the practical effects of 27 different company‑law systems. That fragmentation has slowed cross‑border expansion, complicated fundraising and made Europe less competitive versus the US and China. EU‑INC aims to tackle exactly this by reducing regulatory friction and providing a single European company structure as an additional option.
Three pain points EU‑INC directly addresses
- Complex corporate administration – Each move into a new EU country today means separate incorporations, stock‑option plans, employment contracts, and legal processes.
- Uneven access to capital – Early‑stage investment remains nationally fragmented in Europe, unlike the integrated US venture market.
- Talent and incentives – Stock options are taxed and structured differently across countries, creating a bottleneck for firms competing for global talent.
That the EU is now pushing a single rulebook shows it has listened to companies’ needs for predictability, scalability, and less friction.
Camilla Norberg, Authorised Public Accountant at Grant Thornton, meets many of the region’s most ambitious founders:
“These businesses look beyond national borders from day one. The Swedish market is often too small for their long‑term, sustainable growth goals. EU‑INC could meaningfully lower the barriers for those aiming beyond Sweden.”
What EU‑INC means – in practice
EU‑INC is a proposed reform to create a new, voluntary EU‑level legal entity for European growth companies – digital‑first and modern. Core elements being discussed include:
- 48‑hour, fully digital incorporation (regardless of country)
- A uniform capital regime across the EU
- A central, digital‑first registry
- Standardised investment documentation (often referred to as EU‑FAST in policy discussions)
- An EU-wide stock-option framework (EU‑ESOP) tailored to startups and scale-ups
The intention is not to replace national company forms but to offer fast‑growing firms a more efficient alternative. In practice, implementation is complex because company law, tax and labour law are national competences. Joanna Bertlin, Authorised Tax Adviser at Grant Thornton:
“It will be crucial to see the details of EU‑INC, particularly the tax implications and whether a truly EU‑wide framework for employee stock options will be possible. Today, it is virtually impossible to offer a single, competitive incentive plan across multiple countries.”
What EU‑INC could mean for companies scaling in Europe
- Faster cross‑border expansion – One company structure across the EU instead of multiple local variants.
- Improved access to capital – A uniform capital regime and better scalability could help companies raise funding faster, seamlessly across Europe.
- Stronger competitiveness vs the US – A concrete step towards conditions that help build companies that stay – and grow – in Europe.
- Talent and options made easier – A unified options approach would simplify attracting and retaining key people.
- Predictability and lower regulatory risk – A single rulebook reduces legal uncertainty – something CFOs and investors have long asked for.
Grant Thornton’s perspective – and how we can support you
Grant Thornton is following developments closely and is ready to help you understand what EU‑INC could mean for your business – whether you are just starting out, scaling internationally or already established and exploring new opportunities in Europe.
“Many entrepreneurs and fast‑growing companies we work with face exactly the challenges the EU now seeks to address fragmented rules, complex set‑ups and different tax and accounting requirements in every new market. The right advice at the right time can make a real difference,” says Gabriel Forssenius, Head of the International Business Centre at Grant Thornton.
Get in touch and we will map your challenges and opportunities together – so you can navigate the road ahead as EU‑INC takes shape.
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