The New “EU Inc.” Business Form for Simplifying Business Operations in the EU: A Complete Guide to the Single Market Revolution

27.03.2026

The European Commission proposed creating a new pan-European legal form for companies — “EU Inc.”. This far-reaching initiative, a key element of the so-called 28th regime, is designed to radically simplify starting and running a business within the European Union. The new structure will allow a business to be registered entirely online within 48 hours, at minimal cost and with no initial capital requirement. What does this mean for entrepreneurs, investors, and the EU economy as a whole? Let us examine every detail of this historic reform.

Introduction: Why did Europe need the EU Inc. form?

Over the decades, the European Union has built a single internal market aimed at ensuring the free movement of goods, services, capital and labour. However, in the field of business law, this market remains deeply fragmented. Today, entrepreneurs wishing to expand their business beyond a single EU country face serious bureaucratic barriers.

The European Union has 27 different national legal systems and more than 60 legal forms for companies . This fragmentation creates a situation where registering a company and expanding its business operations can take weeks or even months, requiring significant financial and time expenditure on legal advice, document translation, and compliance with various regulatory requirements.

Amid global competition, particularly with technology giants from the United States and China, such sluggishness is becoming a critical disadvantage. Many promising European start-ups prefer to register in jurisdictions with more flexible business law, such as the US state of Delaware (Delaware Inc.). To stop this “brain and capital drain”, the European Commission developed the EU Inc. concept .

“Europe has the talent, ideas, and ambition to become the best place for innovators. But today, European entrepreneurs who want to expand their businesses face 27 legal systems and more than 60 national company forms. With EU Inc., we will significantly simplify the process of starting and developing a business across Europe. Any entrepreneur will be able to set up a company within 48 hours, from anywhere in the European Union, entirely online. This important step is only the beginning. Our goal is clear: one Europe — one market — by 2028” .— Ursula von der Leyen, President of the European Commission.

What Is EU Inc.? The Essence of the “28th Regime”

“EU Inc.” (short for European Union Incorporated) is a voluntary legal structure oriented toward digital technologies. It is important to understand that it does not replace existing national forms (such as GmbH in Saksamaa, SAS in Prantsusmaa, or Sp. z o.o. in Poola), but is offered as an alternative operating alongside them. This is precisely why the concept is often called the “28th regime” (in addition to the national regimes of the 27 EU member states) .

Entrepreneurs will be able to establish companies under a single legal structure recognized in all 27 EU member states. This means that a company registered as EU Inc. in one country will be able to freely open branches, hire employees, and operate in any other EU country without having to undergo a complex re-registration procedure or adapt to local business law.

Comparison of EU Inc. and traditional national forms

Property	Traditional national forms (e.g., GmbH, Sp. z o.o.)	Uus vorm EU Inc.
Registration time	From a few days to several weeks	Maximum 48 hours
Registration fee	Varies, often exceeds 500-1000 euros	No more than 100 euros
Share capital	Often required (e.g. 25 000 euros for a GmbH)	No minimum capital requirements
Procedure	Often requires an in-person appearance and a notary	Fully digital (online)
Recognition in the EU	Requires adaptation when entering new markets	Automatic recognition in all 27 countries
Language of administration	Official language of the country of registration	Option to use a single standard

Key Benefits and Features of the New Form

According to the Euroopa Komisjon proposal, the EU Inc. regime offers several unprecedented advantages for the European market, which should make it a “game-changer” (game-changer) for start-ups and innovative companies.

1. Ultra-fast and inexpensive registration

The reform's main promise is speed. A company using the EU Inc. form can be established within 48 hours. The cost of this procedure is capped at 100 euros . In addition, establishing an EU Inc. does not require a minimum share capital contribution, removing a serious barrier for aspiring entrepreneurs, students, and researchers who want to commercialize their ideas.

2. Full digitalization (Digital-by-default)

All processes, from registration to potential liquidation, will take place entirely online. Companies will need to submit information only once through a single EU-level interface connecting national business registers. The “once-only” principle relieves companies of the need to repeatedly submit the same data to different public authorities .

3. A single tax and VAT identification number

In the second stage of the reform, Euroopa Komisjon plans to create a new EU central register. Companies in the EU Inc. form will be able to obtain their tax identification numbers and value-added tax (VAT) numbers without having to resubmit documents in different countries. This will radically simplify cross-border trade and accounting .

4. Simplified liquidation and bankruptcy

European business culture has traditionally been harsh on failure, and bankruptcy proceedings are often lengthy and stigmatizing. EU Inc. introduces fully digital and simplified liquidation processes. This allows founders to “wrap up” a failed project more quickly and cheaply, test new innovative ideas, and start over. This approach is closer to Silicon Valley culture, where failure is considered a valuable experience .

Attracting investment and retaining talent

One of the main reasons for implementing EU Inc. is Brussels' desire to keep innovative companies within Europe. Currently, when raising major investments (Series A, B and later rounds), many successful European start-ups face pressure from international venture capital funds that demand the company be reincorporated in the USA (most often in the state of Delaware) or the United Kingdom.

The new regime offers tools that should make Europe equally attractive to investors and highly qualified employees:

Employee stock options (ESOP)

EU Inc. companies will be able to implement pan-European employee stock option programmes with harmonised deferred taxation. A stock option will be taxed only on the income received after its sale (monetisation), rather than when it is granted. This is critically important for start-ups that cannot compete with large corporations on salaries but can offer a stake in the company's future success . Until now, differences in the taxation of stock options across EU countries made creating a unified incentive programme for a distributed team a genuine nightmare.

Digital Share Transfers and Capital Flexibility

The mandatory involvement of notaries and intermediaries in the transfer of shareholdings will be abolished. The process will become digital, significantly accelerating and reducing the cost of raising venture capital and carrying out M&A (mergers and acquisitions) transactions. In addition, EU Inc. companies will be able to issue different classes of shares with different economic or voting rights. This will allow founders to raise significant investment while retaining control over the company's strategic management and protecting it from hostile takeovers .

Protection of Employee Rights and Social Guarantees

A key aspect of the proposal that has sparked considerable debate is whether EU Inc. could become a vehicle for “social dumping”. Critics fear that companies will register in countries with the lowest labour protection standards to minimise costs.

However, the European Commission emphasises that the proposal includes robust measures against abuse. This reform does not affect national labour and social legislation. An EU Inc. company will be fully subject to the relevant guarantees and laws of the Member State in which it is registered and actually operates, including rules on co-determination (employee participation on boards of directors) .

EU Inc. vs. Delaware Inc.: Can Europe Win?

The creation of EU Inc. inevitably draws comparisons with the corporate regime of the US state of Delaware. Delaware Inc. has for years been the absolute favourite of start-ups from around the world thanks to low taxes, flexible corporate governance rules and a specialised court (Delaware Court of Chancery) that resolves corporate disputes quickly and predictably .

EU Inc. is Europe's answer. Its main advantage is direct access to the single market of 450 million consumers with purchasing power, without the need to adapt to 27 different regulatory regimes. For international investors and entrepreneurs from third countries, EU Inc. companies may become the simplest and most logical way to enter the European market.

To strengthen EU Inc.'s position, Euroopa Komisjon is also calling on EU Member States to consider establishing specialised judicial chambers or courts authorised to hear disputes related to EU Inc. business law . This should ensure the same legal predictability for which Delaware is known.

Context: Competitiveness Compass and the future of the EU economy

The EU Inc. initiative did not emerge in a vacuum. It was announced as part of the European Commission's “Competitiveness Compass” (Competitiveness Compass) in January 2025. This strategic document was a response to Europe's growing lag behind the United States and China in high technology, artificial intelligence and the “green” economy .

Politically, this step reflects Brussels' deep concern that Europe generates excellent research and ideas but is unable to turn them into global commercial success stories because of excessive bureaucracy and market fragmentation. EU Inc. is positioned as the cornerstone of a new strategy aimed at making Europe the world's most convenient place to start and scale an innovative business.

What happens next? Implementation deadlines

1.The proposal submitted in March 2026 to create EU Inc. is currently under discussion. Given its key importance for the EU's competitiveness, the European Commission calls on the European Parliament and the Council of the European Union (which represents the governments of the Member States) to reach an agreement on this matter by the end of 2026 .

After the regulation is adopted, it will take time to create the necessary digital infrastructure, particularly a unified interface and central register. However, the political will to implement this project appears stronger than ever.

Summary: A New Era for European Business

The implementation of the “EU Inc.” legal form could become the most significant change in the European business landscape in recent decades. The promise of registration within 48 hours, a cost of up to 100 euros, and the complete absence of bureaucratic barriers when entering the markets of other EU countries sounds like a dream to every entrepreneur.

If the initiative is implemented as announced and does not become burdened with compromise exceptions during the coordination process between Member States, it is truly capable of unlocking the full potential of the Single Market. EU Inc. will not only make life easier for existing businesses but may also trigger a genuine boom in the creation of new start-ups, restoring Europe's status as a global innovation hub.

For entrepreneurs, investors and lawyers, now is the right time to begin examining the details of the proposed “28th regime” so they are ready to take advantage of its benefits as soon as it becomes law.