Yesterday, the European Commission presented its proposal for EU Inc., a unified framework of corporate rules, forming the foundation and initial step toward the EU’s 28th regime. It is a long awaited initiative, aiming to cut through regulatory fragmentation and make Europe more competitive for startups and high-growth companies.
At its core, EU Inc. offers a single, harmonised set of corporate rules that companies can choose instead of navigating 27 national legal systems and dozens of company structures. The Commission says this could significantly reduce administrative friction that currently slows expansion and increases costs for entrepreneurs operating across borders.
“Europe has the talent, the ideas and the ambition to become the best place for innovators,” said European Commission President Ursula von der Leyen. “With EU Inc., any entrepreneur will be able to create a company within 48 hours, from anywhere in the European Union, and fully online.”
A digital-first corporate model
EU Inc. is designed as a “digital-by-default” framework, enabling companies to be registered, managed, and even dissolved entirely online. Founders would be able to set up a company in under 48 hours for less than €100, with no minimum capital requirement.
The proposal also introduces a unified EU-level interface connecting national business registers, allowing companies to submit their data once and reuse it across jurisdictions. A future central EU register is planned as part of the rollout.
Tackling fragmentation in the single market
The move directly addresses a long-standing issue for European startups: regulatory fragmentation. Today, companies expanding across the bloc must navigate more than 60 different legal forms and comply with multiple national systems, often delaying operations by weeks or months.
The initiative builds on recommendations from the Draghi Report, which highlighted the need to improve Europe’s ability to scale innovative businesses and compete globally.
The Commission also proposes streamlined insolvency procedures, allowing founders to wind down failed ventures more easily and restart new ones—an approach aligned with startup ecosystems in the US and other innovation hubs.
Despite its EU-wide scope, EU Inc. will not override national employment or social laws. Companies operating under the framework will still be subject to the labour and co-determination rules of their country of registration.
To ensure fair competition, the proposal includes safeguards against abuse and a blacklist of prohibited practices.
Broader push toward a “28th regime”
The EU Inc. proposal is part of a broader strategy to establish a fully integrated business environment across the bloc. Alongside it, the Commission released a Communication outlining complementary initiatives, including:
- A European Business Wallet for streamlined interactions with public authorities
- Potential judicial reforms, such as specialised courts for EU Inc. disputes
- Exploration of cross-border telework frameworks
- Expanded access to capital through reforms tied to the Savings and Investment Union
- Tax simplification initiatives, including the proposed Head Office Tax (HOT) system and the BEFIT framework
What’s next
The proposal now heads to the European Parliament and the Council for negotiation. The Commission is pushing for an agreement by the end of 2026, positioning EU Inc. as a key pillar of its competitiveness agenda for the 2024–2029 period.
