EU Inc.: A new harmonised corporate legal regime

Gormo

It's funny that the EU pretends not to be a sovereign entity or a state in its own right, but then sets up legal frameworks like this. Even in the US, you can't set up a corporation at the federal level: apart from a handful of entities chartered via special acts of Congress, a business entity must exist under the laws of a particular state.

dmitrygr

> The objective is to enable innovative companies to operate under a single, harmonised set of EU-wide rules, covering relevant aspects of corporate, insolvency, labour and tax law. A good idea in theory > legal framework provides faster (within 48 hours), cheaper (maximum EUR 100) and fully digital company registration, simplified procedures throughout the company life cycle Did not expect this . If they deliver, this might actually make startups in europe a bit more common

jjmorrison

The only antidote to bureaucracy is more bureaucracy.

sherlock_h

Even if it falls short on the ideal implementation via a regulation rather than a directive (the former mandating all states to adhere to a single implementation and the latter defining a framework that can be implemented by member states) this is still a huge accomplishment and a step in the right direction. And all done as a grass roots effort from a few dedicated and motivated folks like Andreas Klinger.

jongjong

I don't like the limited liability construct. There needs to be full liability shared between all stakeholders.

pier25

So this basically makes the Estonian e-residency program obsolete?

geff82

Will I be able to freely move between EU countries when I own such a company or will Germany tax 340% of the average profit of the last three years for doing so as they do now? People with German GmbH are essentially unable to move anywhere.

ant6n

I was looking into using tokenize.it to get some of these benefits for a German GmbH. But I guess this eu inc will take years beige it exists.

kkfx

Another take to deny the need of a POLITICAL union. Anyway a large slice of the issue lay in the many different social security systems, the vastly different inheritance tax regimes (zero inheritance tax for some states, over 80% for others) and so on, having a company that exists as a state unto itself, but with employees from another state subject to its rules, doesn't simplify things; it only complicates them. What is needed is the arrest of the Commission for a coup d'état and high treason, with its powers being transferred to the European Parliament.

igoy_k62

good read. thanks for sharing

iknowstuff

Would you invest in e.g. a Croatian startup? I bet not, because you don’t know their laws, and you don’t want to litigate in Croatian. You also don’t know the tax implications and chance is you will only find out when it’s too late. So if an EU Inc happens, it needs to be based on a shared English law, otherwise it doesn’t change much

woodpanel

The first policy of the last 20 years by this gerontocratic, bureaucratic, and corrupt institution, that makes sense. > The objective is to enable innovative companies to operate under a single, harmonised set of EU-wide rules, covering relevant aspects of corporate, insolvency, labour and tax law. Especially the last two topics are the nitty gritty details, subject to day-to-day populism by local politicians. It’s why „relevant aspects“ dampens my hopes. Sometimes I wonder if we should just reduce the EU to a non-geographical sovereign state with which EU countries have a shared agreement. I‘d the incorporate within this state, have it taxed and regulated there. Sort of like a mixture of the City of London and the Holy See.

Brajeshwar

With the naming of “28th Regime”, I think they should have named it like “0th Regime”, or “Zero Regime”, or “99th Regime.” What if another country or two or more are added in the future? They will be on the 29, 30th, and so on. Question: Anyone know if this is open internationally or is just for European Residents?