What Is EU Inc and How It Could Reshape European Business

Why Europe Needs a New Company Form

Starting a company in the United States means filing in one state—often Delaware—and operating everywhere. In Europe, entrepreneurs face 27 different national legal systems and more than 60 distinct company forms. Expanding from Berlin to Paris to Madrid means hiring local lawyers, navigating unfamiliar corporate codes, and often setting up entirely separate subsidiaries in each country.

This regulatory fragmentation has long been blamed for Europe's inability to produce tech giants on the scale of Silicon Valley. Founders spend months and tens of thousands of euros on legal compliance before they can sell a single product across borders. The European Commission's answer is EU Inc.—a unified, optional corporate framework designed to cut through the red tape.

How EU Inc Works

EU Inc operates as what policymakers call the "28th regime." It does not replace any national company law. Instead, it sits alongside all 27 existing systems as an alternative. Founders can choose to incorporate under their home country's rules or under the new EU-wide framework.

The key mechanics are straightforward:

• 48-hour online registration from anywhere in the EU, at a cost below €100
• No minimum share capital requirement—a company can start with as little as one euro
• Single submission of company information via an EU-level portal that connects national business registers
• Automatic recognition across all 27 member states, with no need for separate filings
• Digital-by-default processes throughout the company's lifecycle, from formation to share transfers to liquidation

Once registered, an EU Inc company receives its tax identification and VAT numbers without resubmitting paperwork. The Commission also plans to establish a central EU register in a later phase and introduce a "European Business Wallet" to streamline interactions with public authorities.

Stock Options and Talent

One of the most celebrated features targets a persistent European disadvantage: employee stock options. In the current system, stock option taxation varies wildly between countries, making it difficult for startups to offer competitive equity packages to employees in multiple member states.

Under EU Inc, companies can create EU-wide stock option plans where taxes are due only when shares are sold—not when they are granted or vested. This mirrors the approach common in the United States and aims to help European startups compete for global talent.

What Makes This Attempt Different

Europe has tried harmonized company forms before—and failed. The Societas Europaea launched in 2004 but proved too complex and expensive for small firms. The European Private Company proposal died in 2010, and a Single-Member Company directive stalled in 2014.

EU Inc differs in two critical ways. First, the entire process is fully digital, eliminating notary requirements and in-person formalities that plagued earlier models. Second, the legislative path uses qualified majority voting—requiring approval from 15 of 27 member states rather than unanimity—making it harder for a single country to block the proposal.

Criticisms and Risks

Not everyone is enthusiastic. Labour unions, led by UNI Europa, warn that companies could exploit regulatory arbitrage by incorporating in member states with weaker worker protections. National governments worry about losing control over corporate oversight and administrative revenue.

Some startup founders themselves remain skeptical. Julian Teicke, founder of the BAD1 advocacy campaign, cautioned that "slapping a single login screen over 27 fragmented legal systems" does not constitute genuine borderless infrastructure. Employment law, social security, and co-determination rules still vary by country and remain fully applicable to EU Inc entities.

What Comes Next

European Commission President Ursula von der Leyen has called on the European Parliament and the Council to reach agreement by the end of 2026, with a broader target of completing the full 28th regime by 2028. The Commission projects that 300,000 companies could be created under EU Inc in its first decade, employing roughly 1.6 million people.

Whether EU Inc fulfills its promise depends on implementation details still being negotiated—particularly around judicial oversight, register interoperability, and the balance between harmonization and national sovereignty. For now, it represents Europe's most ambitious attempt yet to answer a deceptively simple question: why should starting a company on one continent be harder than on another?