Open a business online in 48 hours: what Eu Inc is and how it works

Over the past year, my colleagues and I in the European Commission have consulted widely with entrepreneurs, investors and stakeholders across the EU. Their message was clear: Europe needs a simpler and more predictable corporate framework for companies wishing to operate cross-border.

More than 85 % of the participants in our targeted consultation identified differences in national company law as a major obstacle. At the same time, according to almost three quarters of the participants, the absence of a recognisable 'EU brand' for private companies makes it more difficult to attract investment.

EU Inc. directly addresses these concerns by providing a single, voluntary and harmonised set of company rules for which companies will be able to opt rather than navigate between several national regimes. While the proposal is designed with the needs of innovative companies, start-ups and scale-ups in mind, it will not be limited to these groups, but will make room for all founders and companies.

By choosing the EU Inc. company form, companies will benefit from faster and simpler procedures. Entrepreneurs will be able to register a company entirely online, within 48 hours, through a single point of access, without a minimum capital requirement. Business processes will be digital by definition throughout the entire lifecycle of a company, including online shareholder meetings, board meetings and simplified insolvency procedures.

EU Inc. will also help European companies compete to attract talented staff. Europe's talent is one of its greatest assets, but companies often struggle to offer large-scale competitive incentives. The new framework will facilitate the creation of employee share plans with common features across the EU, helping companies to attract and retain the talent they need to grow.

Access to capital will also be easier: by providing a clearer and more predictable company structure, EU Inc. will make it easier for companies to raise equity capital across borders and throughout their growth cycle, from start-up to the critical expansion phase.

This is important because all too often European companies encounter obstacles just when they are ready to grow. Faced with regulatory complexity across the single market, many companies choose to expand elsewhere, notably in the US.

Europe should be the best place in the world to build a business. The talent is here, along with the ideas. Our goal is to ensure that the regulatory environment allows companies to expand across Europe as easily as they can within a single country and to keep European innovation in Europe.

The 28th regime is thus not just a technical reform of company law, but aims at exploiting the full potential of the single market.

At the same time, Europe's competitiveness must remain anchored in our core values of reliability, predictability and respect for the rule of law. These qualities promote trust, which is one of the most powerful drivers of sustainable growth. This translates into better jobs, a higher standard of living and more opportunities for our citizens while enhancing Europe's ability to set global standards.

European entrepreneurs should not be forced to relocate to realise their ideas. By offering businesses speed, simplicity and opportunities for expansion, EU Inc. creates the conditions for the next generation of EU businesses to thrive, thanks to Europe's level of certainty and trust.

The message is simple: if you want to grow in the future, Europe is 'open for business'.

* European Commissioner for Democracy, Justice, Rule of Law and Consumer Protection