One Europe – one market – by 2028.

The European Union has long been home to world-class talent, strong research, and ambitious entrepreneurs. Yet, despite these advantages, many startups struggle to scale within Europe.

The reason is not a lack of innovation, but fragmentation.

With 27 national legal systems and more than 60 company structures, expanding across EU borders remains complex, time-consuming, and costly. To address this, the European Commission has introduced a new proposal: EU Inc.

What is EU Inc.?

EU Inc. is a proposed optional European-wide corporate framework that allows companies to operate under a single set of rules across the EU.

Instead of navigating different national regulations, businesses would be able to choose a harmonised system designed specifically to support cross-border growth.

The objective is simple: make Europe a more competitive and attractive place to start and scale a business.

Today, entrepreneurs expanding across the EU face:

• Multiple registration processes in different countries
• Legal and administrative complexity
• High costs for compliance and advisory services
• Delays that can slow down growth and innovation

As a result, many startups choose to scale outside of Europe, particularly in more unified markets like the United States.

EU Inc. aims to remove these barriers.

Key Features of EU Inc.

1. Fast and affordable company creation

• Set up a company within 48 hours
• Cost of less than €100
• Fully digital process
• No minimum share capital required

2. Single registration for the entire EU

• Register once and operate across all EU Member States
• No need to repeat administrative procedures
• Streamlined access to tax identification and VAT numbers

3. Digital-first corporate operations

• Fully digital processes throughout the company lifecycle
• Reduced paperwork and administrative burden

4. Startup-friendly environment

• Simplified insolvency and liquidation procedures
• Easier to close and restart businesses
• Encourages experimentation and innovation

5. Improved access to investment

• Flexible share structures
• Simplified share transfers (no mandatory intermediaries)
• Potential access to stock markets

6. Better tools to attract talent

• EU-wide employee stock option plans
• Taxation only when shares are sold

EU Inc. is optional and does not replace national company laws.

Importantly:

• National labour and social laws still apply
• Worker protections remain unchanged
• Member State safeguards continue to be enforced

This ensures that simplification does not come at the expense of social standards.

EU Inc. is part of a wider EU strategy to boost competitiveness and innovation.

As European Commission President Ursula von der Leyen stated:

“One Europe – one market – by 2028.”

The proposal aligns with broader initiatives such as:

• Improving access to capital
• Simplifying taxation frameworks
• Supporting startups and scaleups
• Enhancing digital public infrastructure

The proposal will now be reviewed by the European Parliament and the Council.

The European Commission aims to reach an agreement by the end of 2026.

If adopted, EU Inc. could become one of the most significant reforms for European businesses in recent years.

Resources: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_614