Greek, EU and other European flags in Strasbourg. File photo. Credit: TeaMeister / Wikimedia Commons / CC BY 2.0. CC BY 2.0.
European Union governments backed a plan Friday that would let founders register a company online through a 48-hour fast track for no more than €100, advancing a proposed alternative to the bloc’s patchwork of national company rules.
The Council of the EU agreed on its negotiating position for “EU Inc.” on October 23. The framework could give Greek startups and other European businesses a common legal form for expanding across borders. It still requires negotiations with the European Parliament before it can become law.
Companies would choose whether to use the new system. Existing national company forms would remain available, making EU Inc. an additional option rather than a compulsory conversion for businesses already operating in Greece or elsewhere in the bloc.
What founders would be able to do
The European Commission presented its proposal in March to reduce the administrative difficulties companies face when operating under different national systems. It covers how companies are formed, financed and managed, with digital procedures intended to make cross-border business easier.
The fast track would use standardized templates. Under the Council’s draft, the 48-hour period excludes weekends and public holidays and requires a complete application and payment. Additional checks could extend the process. Company information supplied at registration would be shared with the relevant authorities to reduce repeated submissions.
The proposed framework also addresses digital share transfers and capital operations. Although designed with startups and growing businesses in mind, the Commission says it would be available to any founder who considers it suitable. For Greek companies seeking foreign investment, the intended benefit is a more familiar corporate framework for investors across the EU.
Employee protections and checks remain
The Council’s position retains an employee stock-option scheme intended to help companies recruit and keep staff. Under the Council’s draft, the special tax treatment would apply when a company had fewer than 750 employees and annual turnover no higher than €150 million when the options were issued.
Employee participation in company decisions would generally follow the rules of the country where the business has its registered office. The Council also proposes an optional mechanism addressing companies that cross employee-participation thresholds in another member state where they operate.
EU Inc. would not provide a general exemption from national employment rules or taxation. The Council’s draft specifies that matters including wages, working conditions, social security and the determination of tax residence remain subject to the applicable laws, apart from specific provisions covered by the proposal.
Governments would also retain checks against criminal misuse. The Council says national authorities could refuse registration on grounds related to money laundering, terrorist financing or other criminal activity.
The next step is agreement on a negotiating position in the European Parliament, followed by talks between the institutions. The Council proposes giving member states 21 months to implement the regulation.
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