I've run a French company for almost a decade now. Their efforts to have a "European" company are nice, but perhaps naive.<p>The main reason to incorporate in a particular country is because you have employees there. You book the revenue in that country, charge VAT in that country, pay employees there, and pay taxes there.<p>When you incorporate in one country, but have employees in another one, it just makes life difficult for everyone.<p>For small companies, the simplest solution is to have "out of country" people be contractors. If the company gets large enough (2-3 people in a country), it's worth creating a subsidiary.<p>And yes, the subsidiary and parent have to exchange contracts, invoices, etc., just as if they were independent companies.<p>Europe just isn't set up to have an "EU" company, with "EU" employees. I don't even know what that would look like, as each country is in charge of it's own social programs, taxes, etc.