Brussels is set to propose a 28th EU regime designed to create a standardized legal framework for companies across the bloc, offering startups and scaleups a simplified, pan-European corporate structure. The initiative, dubbed “EU Inc.”, aims to allow businesses to operate throughout the single market as seamlessly as if they were operating within a single country, bypassing the complexities of 27 national legal systems.
The European Commission will present the proposal on March 18th, according to sources, with the intention of establishing companies in as little as 48 hours at a maximum cost of €100, entirely online. The constitution of these EU Inc. Entities will follow standardized community statute models, utilizing a centralized procedure linked to national business registries. All stages of a company’s lifecycle – from registration and management to liquidation – will be handled digitally.
A draft of the proposal, viewed by ANSA, highlights a significant reduction in bureaucratic hurdles for companies expanding beyond national borders. The new regime is optional, and will introduce more flexible rules for capital raising, allowing EU Inc. Companies to issue shares without nominal value and utilize venture capital instruments, easing access for both European and international investors. Brussels also intends to streamline administrative burdens by automatically transmitting registration data to relevant authorities, eliminating redundant paperwork.
Preliminary estimates suggest the reforms could generate up to €440 million in savings for businesses across the continent. A key component of the plan, to be detailed by EU Vice President for Digital Sovereignty, Henna Virkkunen, is a European employee stock ownership plan (Eu-Esop). This would allow companies to issue warrants – rights convertible into shares after a vesting period – offering stock options under a unified scheme valid throughout the EU. Income derived from these warrants would be taxed only once, upon the sale of the shares, resolving current discrepancies in tax treatment across the 27 member states.
The move comes as the EU seeks to bolster its economic competitiveness against the United States and China, aiming to create a single market of 450 million consumers. The initiative also arrives amid ongoing debate over the competitiveness of European businesses, particularly in relation to regulatory burdens.
