The proposed “EU Inc.” or “28th Regime” corporate structure was announced by Michael McGrath, European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, on 18th March 2026 which aims to enable entrepreneurs to start and scale up across the EU using one set of company rules, thus creating a more attractive climate for investment and venture capital.
While all companies will be entitled to transfer to, or be established under, the EU Inc framework, it is understood the new system is specifically designed to encourage innovative start-up and scale-up enterprises.
The proposed EU Inc. would help European companies to avoid the 27 different legal systems of the 27 Member States that can impede the
Main features of EU inc. include:
- Faster registration: Entrepreneurs, founders, and companies will be able to found an EU Inc. company within 48 hours, for less than €100 and with no minimum share capital requirements.
- Simpler procedures: EU Inc. companies will only need to submit their company information once, via an EU-level interface connecting national business registers together. In a second step, the Commission will establish a new central EU register. EU Inc. companies will obtain their tax identification and VAT numbers without having to resubmit paperwork.
- Fully digital operations: Corporate processes will be digital by default throughout a company’s lifecycle.
- Helping founders restart faster and cheaper: EU Inc. companies will have access to fully digital liquidation procedures. Innovative startups will have access to simplified insolvency procedures to facilitate the winding down of operations. This enables founders to try and test innovative ideas and start again if needed.
- Better conditions to attract investment: Today’s proposal will remove in-person formalities, provide digital procedures for financing operations, and simplify the transfer of shares. There will be no more mandatory involvement of intermediaries for share transfers, and liquidation procedures. The proposal will also allow Member States to give EU Inc. companies access to the stock exchange.
- Better means to attract talents: EU Inc. companies will be able to set up EU-wide employee stock option plans. The stock option will only be taxed on the income generated once it is sold. This is a crucial factor in ensuring attractiveness, particularly for innovative startups.
- Full access to the Single Market: EU Inc. companies will be free to choose the Member State in which they incorporate. The proposal includes a blacklist of prohibited practices to ensure that EU Inc. companies are treated the same way as any other national companies.
- Strong safeguards against abuse: National employment and social laws are not affected by the proposal. They will apply to EU Inc. the same way they apply to any other business under national company law. The applicable safeguards of the Member State of registration will apply in full to the EU Inc. company, including when it comes to rules regarding co-determination.
- Flexibility of shares: EU Inc. companies will have the flexibility to create different classes of shares with varying economic or voting rights. This can, for example, help founders protect their business against hostile takeovers.
For more information on the proposed EU Inc. click here
When will it be commenced?
The proposals will be put before the EU Parliament with a hope that the proposal will be passed by the end of 2026.
We will keep you updated on the proposals as they emerge.
NB: The content of this article is provided for information purposes only and does not constitute legal or other advice.
Share this on...