The European Commission launches EU Inc., the long-awaited ‘28th regime’ for startups
The European Commission is set to introduce a new company structure, dubbed "EU Inc.," representing a significant step towards simplifying business operations across the European Union. This initiative, announced by President Ursula von der Leyen at the World Economic Forum, aims to establish a unified legal framework for startups, addressing long-standing challenges in cross-border activities. The move comes after a policy campaign backed by over 22,000 signatories. EU Inc. is designed as an optional "28th regime," operating alongside existing national company structures. Key features include a unified legal entity under EU law, streamlining cross-border incorporation and operations. Furthermore, the initiative includes a central EU registry for fully digital onboarding in English, standardized investment documentation, and a Europe-wide stock option framework to ease pan-European funding. The new structure is expected to significantly impact startups by reducing administrative burdens and facilitating easier access to the European market. By enabling companies to register in any member state within 48 hours, fully online, EU Inc. seeks to create an environment where businesses can operate and secure funding seamlessly across Europe. This is crucial for competing with markets like the US and China. While the details of the rules are still in development and adoption by member states is not mandatory, the potential impact on European innovation is substantial. The success of EU Inc. hinges on widespread adoption and effective implementation, with the goal of fostering a more competitive and attractive environment for startups and international investment.
Curated and translated by Europe Digital for our multilingual European audience.
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