The EU Commission has presented its proposal for “EU Inc.”, a new optional EU-wide corporate legal framework intended to reduce fragmentation across national company law systems and make it easier for businesses to operate across the Single Market. The proposal is presented as the cornerstone of the broader 28th regime for EU companies.

The initiative is mainly aimed at improving conditions for startups and scaleups, while remaining open to any company that chooses to use it. According to the Commission, EU Inc. would allow faster and cheaper digital company creation, including registration within 48 hours, a maximum cost of EUR 100 when using the standard route, application of the once-only principle with other authorities, and no minimum share capital. The proposal also includes fully digital company law procedures, simpler share transfers, easier use of investment instruments and a common framework for employee stock options.

Alongside the legislative proposal, the EU Commission adopted a Communication on the wider 28th regime, setting out complementary measures on digitalisation, access to finance, taxation and talent.

The package also includes a Commission Recommendation introducing common definitions for innovative enterprises, innovative startups and innovative scaleups. The definitions are based on criteria such as R&D intensity, age, size and growth, with the aim of improving consistency across EU and national support measures and reducing differences in how such companies are treated across Member States.

The co-legislators, European Parliament and Council of the EU (Member States) will now analyse the proposal and provide amendments. The Commission states that it wants co-legislators to reach agreement on the proposal by the end of 2026.