What is EU Inc.? The European Commission proposal aims to make it easier to start, grow and expand a business across the EU with simpler rules, digital registration and fewer barriers.

Backed by the European Commission under President Ursula von der Leyen, EU Inc. could allow companies to register within 48 hours for less than €100, attract investment more easily and operate across the EU under a more standardised framework, while national tax, labour and social rules continue to apply.

In this video:

00:00 Why expanding across the EU is complicated

00:16 What is EU Inc.?

01:02 Register a company in 48 hours for less than €100

01:20 Funding and investment

01:37 Tax, labour and social rules

02:07 What happens next

02:22 A simpler EU Single Market

  • Archimedes@sh.itjust.worksEnglish
    14·
    1 day ago

    Arguably the main problem is national taxes and social contributions. It’s extremely expensive to operate and disproportionately affects small business. Getting started isn’t really the problem, staying afloat is. I suspect lowering the entry barriers will largely result in more insolvencies.

    I can only speak for Germany from experience but it really feels like everything you get, you don’t get. It’s just working for the tax department with extra steps and terrible pay.

    A small shop will turnover about 30k per month, 10k will go on taxes and non-optional non-taxes like GEMA, GEZ, IHK, BGN, etc. 3 full time staff will absorb 10k in minimum wages and social contributions. The remaining 10k have to cover 2k rent, 1k insurances, stock purchases, packaging purchases, advertising, legal and administrative services, energy costs, some liquidity savings (machines need service, sometimes replacing). There’s nothing left for the owner-operator to live off and they also have rents, social security, energy and taxes to pay. It’s not really viable to do a small business unless it’s something with huge value addition to beat the curve.

    The administrative start up cost isn’t the hurdle, it’s macro economics. The money is sucked out of small enterprises because the big corporations aren’t taxable, they have the resources and political backing to avoid being taxed the same way.

    Its better to work a bullshit job.

    • atro_city@fedia.io
      4·
      1 day ago

      They should get rid of the income tax and just have a wealth tax. And also a national gains tax for companies: you make money in the country = you pay tax on that money in the country you made it. Then companies like Goolag and Macroslop can’t just send the money to another country and pay taxes there.

      But social contributions… nah. That has to stay. That’s definitely worth it. Just because you’re a small business doesn’t mean your employees should work in precarious conditions.

      • ExtraJudgement@lemmy.worldEnglish
        2·
        18 hours ago

        The data is very clear. See in particular in terms of how people need to be relieved:

        1. Lower the value added tax, 0% for staple foods.
        2. Lower social contributions.
        3. Lower the income tax.

        In that order. Note that lower social contributions can (and should) just be balanced via the federal budget.

        But since people vote for parties that will never do this and all but ignore parties that would, people will continue to get screwed.

      • Archimedes@sh.itjust.worksEnglish
        1·
        1 day ago

        I’m not suggesting social contributions should go. But that’s the cost of doing business and as such a lot of smaller enterprises simply can’t afford to do business. It becomes a bigger money game. Which I think is problematic.