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EU Leaders Want EU Inc Agreed by Year-End, but Parliament’s Vote Slips to 5 November and Founders Say It “No Longer Exists”

TL;DR: what happened to EU Inc this week?

Two things pulled in opposite directions. On 16 October 2026, EU leaders named the “28th regime for company law”, the EU Inc company form, a deliverable for 2026 and asked Parliament and Council to conclude the talks “by the end of the year”. But the European Parliament’s committee vote, planned for today, 19 October, has been moved to 5 November, because lead MEPs still disagree on employee participation. A day before the summit, the EU-INC founder campaign told Europe’s leaders that “the EU Inc you championed […] no longer exists”. EU Inc is still only Proposed. You can’t register one before 2028, so start with a national company form now. Background: our report on the first postponed EU Inc vote.
Today, 19 October, was supposed to be the day the European Parliament’s legal affairs committee finally voted on EU Inc, the company you could set up online in 48 hours for under €100 and use across all 27 EU countries. That vote won’t happen today.
At the same time, the EU’s heads of state and government have told lawmakers to hurry up, and Europe’s best-known founders say the proposal is being emptied out. If you’re a first-time founder deciding where and how to incorporate, here’s what changed this week and what it means for you.

What happened: a deadline from the top, a delay in Parliament

EU leaders set a year-end deadline. In their conclusions of 16 October 2026, the 27 leaders said they want “additional progress” on their single-market roadmap, “both on the level of ambition and on the agreed timelines”. They named “the 28th regime for company law” first among the deliverables for 2026 and invited the co-legislators “to conclude negotiations on all these files from the roadmap […] by the end of the year”. Status: Adopted as political conclusions; they are not law and don’t change the proposal.
They also asked for less reporting for small firms. In the same text, leaders called on the Commission to cut red tape, “including by putting forward a proposal to cut reporting obligations, in particular for SMEs”. No such proposal exists yet.
The Parliament vote slipped again. The rapporteurs met on the evening of 14 October and again failed to agree on the chapter about employees’ right to take part in company governance, Agence Europe reported. The S&D and Greens/EFA groups have made it a red line. The committee vote, planned for 19 October, “has now been set for 5 November.” A source told Agence Europe this still fits the overall schedule.
Leaders are impatient. At the summit, German Chancellor Friedrich Merz said “we are well behind the timetable we set ourselves in the spring”, while Ireland’s Taoiseach Micheál Martin, whose government chairs the Council until December, called the “European Inc. proposal […] very important for entrepreneurs” but noted that “some Member States have concerns”, according to Agence Europe.

The founders’ warning: “EU Inc no longer exists”

On 15 October, the EU-INC campaign, whose name the Commission borrowed for its proposal, published a statement headed “Dear Europe, why are you killing EU Inc?”. It was addressed to Europe’s heads of state and government. According to EU-Startups, it says: “The EU Inc you championed – one that will enable Europe to compete at scale – no longer exists. Months of negotiations have removed the core of the proposal.”
The EU-INC campaign says it has more than 26,000 founders, investors and operators behind it, from 27 countries. EU-Startups names founders linked to Stripe, Mistral AI, Klarna and Wise, and investors from Atomico, Index Ventures and Seedcamp. The statement ends with a line aimed at leaders: “Europe’s founders will have a future. Whether that future is European is in your hands.”
The campaign lists five provisions it calls non-negotiable. Here is where each one stands, based on reports up to 16 October:
Founders’ demandWhere it standsStatus
Free choice of the country where you registerIn the Commission proposal; contested by unions and some governments worried about “regime shopping”Proposed, under pressure
One central EU company registryDeleted in the Council’s first compromise (17 July); the Commission planned a central interface firstCut from the Council draft
Common employee stock options, taxed at saleCapped in July at firms under 1,000 staff and €450m turnover; ambassadors split on 30 SeptemberDebated
Local labour law and taxes follow real activityThe Commission says EU Inc does not override national labour lawProposed
Open to all companies, all sizes and sectorsA Parliament majority wants it open to all companiesDebated
Sources: EU-INC, EU-Startups, Science|Business, Agence Europe. Council compromise texts are not public, so details come from press reports.

What EU Inc was supposed to be

The Commission’s proposal of 18 March 2026 promised registration in 48 hours for less than €100 with EU templates, no minimum share capital, a fully digital company life, and EU-wide employee stock options taxed only when shares are sold. It would sit beside the 27 national company laws as an optional extra, not replace them.
Since then, both sides have rewritten it. In July, the Irish Council presidency limited the stock options to companies with fewer than 1,000 employees and less than €450 million in turnover and deleted the central registry, Science|Business reported. Commissioner Stéphane Séjourné pushed back on 24 September: “I cannot see the 28th regime and the Commission’s proposal without stock option harmonisation.” Ireland’s enterprise minister Peter Burke said EU Inc “does not water down any employment law of any member state”.

Who wants what

WhoPositionStatus
European Council (EU leaders)28th regime a 2026 deliverable; conclude talks by the end of the year; SME reporting cutsAdopted conclusions, 16 Oct 2026
European CommissionKeep stock option harmonisation; a central interface, then a central register; 48 hours, under €100, no minimum capitalProposed, 18 Mar 2026
Council (Irish presidency)Two compromise texts; registry out, stock options capped, more checks at formationDebated, no mandate yet
Parliament (S&D, Greens/EFA)Strong employee participation rules as a red lineDebated, vote on 5 Nov
EU-INC campaignFive non-negotiables, including the registry and stock optionsAppeal to leaders, 15 Oct 2026
Trade unionsFear firms will register where labour rules are weakestProtest in Brussels, 24 Sep 2026
Sources: European Council; European Commission; Agence Europe; Science|Business; EU-Startups.
Why does employee participation stop everything? In some countries, such as Germany, employees get seats on the boards of larger companies. The S&D and Greens want “the participation threshold of the most ambitious country of operation” to apply to an EU Inc if talks between unions and management fail, wherever the company is registered. The centre-right and liberals don’t want EU Inc to become a way to impose board-level co-determination across Europe.

What this means for you

Leaders want a deal by December, but even a deal this year means no EU Inc registrations before 2028, and the company you could register then may be less simple than the one promised in March. Here’s what to do now.
  1. Don’t wait: register a national company. A Dutch BV needs one cent of capital, an Estonian OÜ can be set up online, and a German UG can start with €1. Our legal basics for the Netherlands walk you through one option.
  2. Watch the cheaper national paths. Some countries are improving on their own. Germany’s Bundestag, for example, has voted to allow GmbH share transfers by video notary from 2027, if the Bundesrat agrees.
  3. Plan equity under national rules. EU-wide stock options are the most contested part of EU Inc. Set up founder and employee equity with today’s rules; our guide to equity distribution in startups explains the basics.
  4. You can already sell across the EU. You don’t need a company in each country to sell in the single market. See international expansion in Europe. Leaders also want to end “fragmented labelling and packaging requirements”, the issue behind our report on packaging rules for small online sellers.
  5. Solo founders: this matters to you too. Three in four new European companies are solo-founded, as we reported in solo founders in Europe 2026. A cheap, digital EU company form would help you most, so follow the 5 November vote.
  6. Track the SME reporting cut. The Commission has been asked for a proposal to cut reporting obligations, in particular for SMEs. Our overview of EU policy changes for women founders follows these files.
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What to watch next

  • 5 November: the Parliament committee vote. If the employee-participation chapter is settled, Parliament can move to a plenary mandate.
  • The Council mandate: EU governments were aiming to agree their position by the end of October, Science|Business reported on 1 October. Stock options and the registry are the parts to watch.
  • December: the leaders’ deadline for a political agreement. Ireland holds the Council presidency until the end of the year.
  • SME reporting cuts: whether the Commission tables the proposal leaders asked for.

FAQ: EU Inc and the 28th regime in October 2026

Was EU Inc approved by EU leaders?

No. On 16 October 2026, the European Council named the 28th regime a 2026 deliverable and asked Parliament and Council to conclude negotiations by the end of the year. Conclusions are political guidance, not law; the proposal still has to be agreed and adopted.

When is the European Parliament voting on EU Inc?

The legal affairs committee vote planned for 19 October 2026 has been moved to 5 November, according to Agence Europe. Lead MEPs still disagree on employee participation rules.

Why do founders say EU Inc no longer exists?

On 15 October, the EU-INC campaign wrote to EU leaders that months of negotiations had removed the core of the proposal, including the central registry, while stock options are capped and contested.

Will EU Inc include stock options?

The Commission proposed EU-wide stock options taxed only at sale. The Council’s July text limited them to companies under 1,000 staff and €450 million turnover, and EU ambassadors were still split on 30 September.

When can I register an EU Inc?

Not before 2028. Even with a deal by the end of 2026, the regulation would apply 12 months after it enters into force, under the Commission’s proposal.

What should I do while EU Inc is negotiated?

Register a national company form where you live and pay tax, such as a Dutch BV, Estonian OÜ or German UG, and plan equity under national rules. You could look at EU Inc again once it exists.
2026-10-19 06:19 Startup News and Trends