EU Inc.: A new framework for scaling businesses across the EU

On March 18, 2026, the European Commission published its proposal for a Regulation introducing “EU Inc.” — an optional corporate form designed to simplify how companies establish and operate across the EU.

The initiative, aligned with concerns raised in the Draghi Report 2024, aims to reduce fragmentation between national legal systems and support innovation-driven businesses scaling across borders.

What is EU Inc.?

EU Inc. would be a harmonized legal form, available alongside existing national entities, offering:

• simplified rules for incorporation and governance

• a fully digital setup and lifecycle

• a structure suited to startups and scaleups

It does not replace national company types and does not harmonize areas such as taxation or labor law.

Key features

Flexible structure:

• no minimum share capital (from EUR 0)

• limited liability

• easy share transfers

• at least one EU-resident director

Standardized Articles of Association:

• digital and bilingual (local language + international business language)

• optional use of a standard template enabling faster registration

Fast, digital incorporation through the Business Registers Interconnection System (BRIS):

• incorporation within 48 hours

• costs capped at EUR 100 (standard cases)

• application of the “once-only” principle

Why it matters?

EU Inc. could significantly reduce administrative burden and facilitate cross-border expansion by:

• accelerating market entry

• lowering setup and compliance costs

• improving access to a unified EU framework

However, companies will still need to consider national rules on tax, employment and related matters.

Outlook

EU Inc. is a highly ambitious proposal and could become one of the most significant recent developments in EU corporate law, strengthening the EU’s attractiveness for high-growth businesses.