EU Inc vs National Companies: Country-by-Country Comparison
The Comparison Everyone Has Been Waiting For
With the EU Inc proposal now on the table, the natural question for every European entrepreneur is: how does it compare to the company form I already know? The differences are striking — and reveal just how fragmented the European business landscape has been.
At a Glance: EU Inc vs National Forms
| Feature | EU Inc | Italian SRL | German GmbH | French SARL | Spanish SL |
|---|---|---|---|---|---|
| Registration Time | 48 hours | 7-15 days | 2-6 weeks | 1-4 weeks | 1-3 weeks |
| Minimum Capital | €1 | €10,000 (€1 for SRLS) | €25,000 (€1 for UG) | €1 | €3,000 |
| Notary Required | No | Yes | Yes | No | Yes |
| Formation Cost | ~€100 | €1,500-3,000 | €1,000-2,500 | €200-1,000 | €600-1,500 |
| Cross-Border Recognition | Automatic (27 states) | Requires local setup | Requires local setup | Requires local setup | Requires local setup |
| Seat Transfer | Free mobility | Complex/costly | Complex/costly | Complex/costly | Complex/costly |
| Digital Governance | Full digital | Limited | Limited | Partial | Partial |
| Stock Options (ESOP) | EU-ESOP harmonized | Complex national rules | Complex national rules | BSPCE (French specific) | Complex national rules |
Where EU Inc Clearly Wins
Speed and Cost
The most obvious advantage is speed and affordability. At 48 hours and approximately €100, EU Inc would be faster and cheaper than any national alternative. Even France's relatively streamlined SARL formation cannot match this. Germany's GmbH, with its mandatory notarization and 25,000 euro capital requirement, represents the starkest contrast.
Cross-Border Operations
This is where EU Inc's value proposition truly shines. A startup that wants to sell in five EU countries today needs to either establish local entities (expensive and time-consuming) or navigate complex cross-border arrangements. EU Inc eliminates this entirely — one registration, one identity, 27 markets.
Talent and Stock Options
The EU-ESOP framework solves one of Europe's most persistent talent retention challenges. Currently, employee stock option plans face wildly different tax treatment across member states, making it nearly impossible for pan-European startups to offer consistent equity compensation. EU-ESOP creates a single, predictable framework.
Where National Forms Still Have Advantages
National company forms aren't without their merits:
- Legal certainty: decades of case law provide clear interpretation of national rules
- Professional ecosystem: local lawyers, accountants, and advisors have deep expertise in national forms
- Industry-specific suitability: some sectors may benefit from national rules tailored to their needs
- Tax optimization: national forms may offer specific tax advantages not available to EU Inc
The Verdict
For purely domestic businesses with no cross-border ambitions, national company forms may still be the practical choice — at least initially, while the EU Inc framework is still new. But for any startup with European ambitions, the advantages of EU Inc are compelling. The combination of speed, cost, cross-border recognition, and standardized governance makes it a fundamentally different proposition from anything currently available.
The real test will come when the first EU Inc companies are registered and begin operating across borders. Until then, the comparison remains theoretical — but the numbers speak for themselves.
Source: A&O Shearman
Source: A&O Shearman