The proposed regulation is seen as the key legislative measure of a wider response from the EU institutions to the demands of the European startup ecosystem, which is further laid out in the accompanying “Communication towards a 28th regime”. The regulation is also accompanied by a Recommendation providing first-ever EU-wide definitions of “innovative enterprises”, “innovative startups” and “innovative scaleups”.
Why does it matter?
The EC recognizes that the EU lacks an innovation-friendly corporate framework, and far too many entrepreneurs and innovative companies wishing to expand across EU borders face navigating a fragmented corporate legal landscape with 27 national legal systems. This complexity can delay setting…