EU Inc.: The New Pan-European Corporate Form for Simplified Digital Business and Startup Expansion

EU Inc.: The New Pan-European Corporate Form for Simplified Digital Business and Startup Expansion

Curated by Att. Riccardo Piselli and J.D. Federico Cotroneo

INDICE

• Introduction
• The fragmentation of EU company law and the need for a common system
• How EU Inc. works

Introduction

On March 18, 2026, the European Commission presented the proposal for a regulation on the EU Inc., a new pan-European corporate form designed to radically simplify the creation and management of businesses within the Union.

The fragmentation of EU company law and the need for a common system

In Europe, business growth is often hindered more by legal complexity than by market dynamics. Operating across multiple Member States means dealing with a multitude of different corporate systems, slow procedures, and high adaptation costs. The European Commission analyzed the difficulties faced by companies seeking to expand within the Union and highlighted that the existence of 27 company law systems and more than 60 different legal forms constitutes a significant barrier to entry for businesses aiming to scale.

To address this fragmentation, the European Commission introduced the EU Inc. Regulation, a new corporate form designed to allow companies to operate under a single legal framework valid across the entire Union.

EU Inc. fits within the so-called “28th regime”: a system that runs parallel to national legal systems without replacing them, introducing harmonized rules to simplify the creation and expansion of businesses in the European market. This is the meaning of the “28th regime”: not to simplify by eliminating differences, but to overcome them by offering the voluntary option of adopting a common framework, immediately accessible alongside national systems. Entrepreneurs will be able to choose whether to establish a business under a national legal form or adopt a single European structure based on uniform rules valid in all Member States.

 

How EU Inc. works

The incorporation phase is one of the most innovative aspects of the proposal.

The stated goal is to eliminate many of the existing bureaucratic obstacles; registration will be entirely digital and accessible from any Member State, without the need for physical presence. In practice, creating an EU Inc. will involve:

1. an online registration system managed through a European platform;
2. incorporation within 48 hours;
3. a maximum incorporation cost set at €100;
4. no minimum share capital requirement.

Once established, EU Inc. is designed to operate digitally throughout its lifecycle. All corporate actions can be managed coherently online, without bureaucratic steps that risk slowing down business operations.

As mentioned, EU Inc. provides a fully digital management model that simplifies day-to-day operations, making it more immediate and attractive: 

1. all corporate procedures are digital, with meetings and decisions held remotely;
2.  the system is connected to national registers;
3. tax identification numbers and VAT numbers are automatically assigned;
4. the company can operate in multiple countries without changing its legal regime.

The reduction of bureaucracy through the adoption of a single legal system common to all 27 EU Member States, easier access to capital, increased attractiveness for both EU and non-EU investors, and reduced entrepreneurial risk through more streamlined insolvency procedures represent the main added value and advantages of this instrument. This is no longer merely a formal simplification that reduces bureaucracy; it directly impacts companies’ ability to grow and attract investment.

The primary beneficiaries of this instrument are startups and SMEs. For startups in particular, expansion into multiple countries is a crucial part of growth, often requiring the establishment of new companies or the navigation of complex procedures. 

With the simplifications introduced by EU Inc., they will now be able to operate directly on a European scale within a common regulatory framework.

While the EU Inc. proposal aims to simplify corporate management, it preserves certain fundamental principles that remain unchanged. In particular, labor law and employee protections, regulations on workplace safety and conditions, and national tax rules remain fully in force, although they may be harmonized in the future.

This means that the new digital corporate form cannot be used to circumvent existing obligations or reduce workers’ rights. Furthermore, specific measures are предусмотрены to prevent abuse, ensure fair competition among companies, and guarantee that simplification does not compromise the protection of fundamental rights of all parties involved.