Commissioner Michael McGrath has pushed back against concerns that the EU Inc. proposal, which allows company formation within 48 hours without minimum capital or a bank account, could facilitate money laundering, arguing that the framework includes multiple safeguards. In a written answer on 12 June 2026 to a question from MEP Ton Diepeveen (PfE), McGrath outlined that the proposal is designed to boost competitiveness while preventing abuse.
The question, submitted on 30 March 2026, warned that rapid incorporation without capital requirements could enable bulk incorporation, VAT fraud, fraudulent bankruptcies, and social dumping. McGrath's answer stressed that any EU Inc. formation is subject to judicial, administrative, or notarial control, and that directors disqualified in any member state cannot serve. Identity checks must comply with the eIDAS Regulation, and the 48-hour deadline does not apply to verifying beneficial ownership information or issuing tax and VAT numbers.
McGrath noted that the once-only principle ensures business registers transmit company data to tax, social security, and beneficial ownership registers, enhancing compliance. Beneficial ownership registers will verify information under the Anti-Money Laundering Directive (2024/1640). Filings throughout a company's lifecycle are subject to preventive control, and registers must check a company's status if doubts arise, with the power to strike it off as a last resort. The proposal complements existing tax and anti-money laundering rules, and the forthcoming interconnection between business registers and beneficial ownership registers will further facilitate cross-checking.
While the answer provides no new numerical targets or legislative deadlines, it signals that the Commission views existing and proposed safeguards as sufficient to address money laundering risks. The EU Inc. proposal, published in 2026, is part of a broader push to simplify business rules and attract investment, but critics like Diepeveen argue it could weaken oversight. Institutional follow-up is expected as the proposal moves through the legislative process, with the European Parliament and Council set to scrutinise the balance between speed and security.