“One of the hugegest challenges for European startups today is fragmentation,” stated Sebastien Marchon, CEO and founder of Belgian expense management software firm Rydoo. “Building a company across Europe still means navigating multiple legal systems, regulatory frameworks and administrative processes. Anything that reduces this friction and assists entrepreneurs scale quicker across the continent is a step in the right direction.”
Jeroen Ten Broecke, an associate lawyer at Belgian firm Philippe & Partners, stated the EU Inc. proposals could “significantly reduce fragmentation” in corporate law, lowering administrative costs and friction for cross-border activity, particularly for early-stage startups. The standardized, digital-by-default approach should also “create it simpler to incorporate and operate across member states,” he stated.
Complexity launchs at incorporation
For startups just receiveting going, the administrative burden launchs when setting up their company. For Exein, founded in Italy, the incorporation process required a notary and lawyers, creating additional costs and bureaucracy in its early days. “At the launchning, when you are a young startup, this overcomplicates things becautilize you don’t have money,” stated Gagliardo. “You have a lot of costs and it’s really time consuming.”
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