EU Inc.: Towards a harmonised corporate framework for EU companies

The European Commission has presented a proposal for a new corporate legal framework under the “28th regime”. The initiative aims to address fragmentation in national company laws and to support companies operating across the EU single market. 

The proposal introduces a new optional legal form, “EU Inc.”, which would be available across all Member States. It establishes a harmonised set of rules covering key stages of a company’s lifecycle, including formation, governance, financing and closure. While particularly relevant for startups and scaleups, the framework would be open to any company choosing to operate under it, alongside existing national legal forms. 

Company formation would be carried out fully online, either through a central EU interface or via national business registers. Where standardised templates are used, the proposal foresees a fast-track procedure allowing registration within 48 hours at a maximum cost of EUR 100, while other cases follow slightly longer timelines. The proposal also introduces the “once-only principle”, enabling company data submitted during registration to be automatically shared with relevant authorities. Other corporate procedures, including share transfers, capital operations and governance, are designed to be conducted digitally. 

The framework also provides harmonised rules on financing and corporate structure, including flexibility regarding capital requirements and the use of financing instruments. It introduces a common scheme for employee stock options, with taxation deferred until the disposal of shares. In addition, the proposal includes simplified procedures for the closure of companies, supported by digital processes covering both solvent liquidation and specific insolvency cases. 

Overall, the EU Inc. framework seeks to provide a more consistent legal environment for companies operating across borders in the EU. It is intended to support founders, investors and innovation actors by reducing administrative complexity and facilitating access to the single market.