🎧 What if the EU introduced a unified legal form for founding companies? In this new episode of Alles Legal – Fintech-Recht kompakt, Charles Krier explains why the 28th regime could be a real gamechanger for start-ups. Tune in now!
Start-up friendly founding: The 28th regime explained
In episode 113, host Dana Wondra from Payment & Banking speaks with Charles Krier, Partner at Annerton in Luxembourg, about the EU’s ambitious proposal for a unified legal form for businesses – the so-called 28th regime.
What’s the idea?
Currently, Europe has 27 national company laws – a significant challenge for start-ups aiming to scale across borders. The 28th regime aims to simplify things through:
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Digital incorporation and a central EU registry
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Legal certainty for cross-border investments
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New employee participation models (e.g. ESOPs)
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A voluntary “opt-in” approach rather than a replacement for national laws
Potential and criticism
The regime primarily targets start-ups and scale-ups – and this has drawn criticism. Can such a system be realistically implemented? Charles Krier explores the political, technical, and legal complexities.
The episode also looks at how the regime could help prevent killer acquisitions and secure Europe’s innovative potential by fostering a more founder-friendly business environment.
More participation, more stability
The SIU is not a single piece of legislation, but a comprehensive package of measures. It aims to increase citizen participation in investments, improve funding opportunities for SMEs and start-ups, and enhance the integration of Europe’s financial systems. Rather than replacing banks, the plan seeks to strengthen their role.
According to Krier, success will depend on involving all stakeholders: citizens, banks, businesses, and Member States. Only through coordinated action can the SIU reach its full potential.
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