EU Inc. Explained: Europe’s New Company Structure (2026 Guide)
Register a company in any EU country in 48 hours, for under €100. No bureaucracy. No minimum share capital. One set of rules for 27 countries. Here’s what EU Inc. actually means.
Quick Summary: EU Inc. is a new, optional company legal form proposed by the European Commission on March 18, 2026. It lets any founder register a company across the entire EU under one unified set of rules — fully online, in 48 hours, for less than €100, with no minimum share capital. It does not replace national company structures. It sits alongside them as a 28th option. This guide explains everything: what it is, how it works, who benefits, and when it becomes law.
Starting a company in Europe has never been simple. A startup in Amsterdam that wants to operate in Warsaw, Madrid, and Vienna faces three separate legal systems, three sets of registration documents, three languages of bureaucracy, and three different compliance frameworks. For a founder with a good idea and limited resources, that friction is enough to look elsewhere.
EU Inc. is the European Commission’s answer to that problem. It’s a single corporate legal form — valid across all 27 EU member states — that founders can choose instead of incorporating under national law. One registration. One set of rules. Full access to the entire single market from day one.
The proposal was officially published on March 18, 2026. It still needs approval from the European Parliament and the Council before it becomes law, with the target set for end of 2026. But the direction is clear, and the political momentum is real. Here’s what you need to know.
What Is EU Inc. and Why Does It Exist?
EU Inc. — formally called the 28th regime — is a new corporate structure created at the European Union level. It’s called the 28th regime because there are already 27 national company law systems across EU member states. This adds one more option that works across all of them simultaneously.
The problem EU Inc. is solving is not abstract. Right now, a company seeking European company registration across multiple countries must navigate more than 60 different company legal forms spread across 27 national legal systems. Setting up entities in multiple countries can take weeks or months, cost thousands in legal fees, and require ongoing local compliance in each jurisdiction.
“A startup from California can expand and raise money all across the United States. But our companies still face way too many national barriers that make it hard to work Europa-wide, and way too much regulatory burden.”
— Ursula von der Leyen, President of the European Commission
That comparison to the US is deliberate. A Delaware LLC or C-Corp works seamlessly in all 50 American states. There’s a reason so many European startups incorporate in Delaware, not in their home country — the legal infrastructure is simply better for cross-border business. EU Inc. is an attempt to build Europe’s equivalent.
How EU Inc. Works: The Key Features
EU Inc. is optional. No founder is required to use it. But for companies planning to operate across multiple EU countries, raise pan-European funding, or hire across borders, the benefits are significant. Here are the main features as proposed by the Commission.
Registration in 48 hours
Any founder, from anywhere in the EU, can register an EU Inc. company fully online in approximately 48 hours. The process runs through a new EU-level digital interface that connects national business registers. There are no in-person formalities, no notary visits, and no paper filing requirements.
Under €100 — no minimum share capital
One of the most significant barriers for early-stage founders in many EU countries is minimum share capital requirements. Some national systems require €10,000 or more to incorporate. EU Inc. eliminates this entirely. The total cost of registration is under €100, and there is no minimum capital threshold.
Submit information once
Under the current system, a company operating in five EU countries must maintain five separate registrations, each with its own filing requirements. With EU Inc., founders submit their company information once, to a central EU-level interface. That data is distributed to the relevant national registers automatically.
Full access to the single market
An EU Inc. company can freely choose which EU country to incorporate in, and then operate across all 27 member states without needing separate legal entities in each. This is the core value proposition: genuine single market access from a single registration.
Standardised investment documents and stock options
One reason European startups struggle to raise capital at scale is the lack of standardised investment documentation across borders. EU Inc. includes harmonised investment templates and an EU-wide stock option framework, making it much easier to offer equity to employees and raise rounds from investors in different member states.
Simplified liquidation
If a company fails, the simplified liquidation procedures under EU Inc. make it faster and cheaper to wind down. This is important for encouraging the kind of risk-taking that drives innovation — founders who know they can close a failed venture without years of legal proceedings are more likely to try new ideas.
How to Register an EU Inc.: Step by Step
Choose your incorporation country
Select any of the 27 EU member states as your base of incorporation. This determines which national employment laws and tax rules apply to your company.
Submit company data via the EU-level interface
Fill out a single digital form on the central EU registration portal. Company name, directors, shareholders, registered address — entered once, distributed automatically to the relevant national register.
Receive confirmation within 48 hours
You get your registration confirmation, company ID, tax reference number, and VAT number within 48 hours. Everything you need to start operating.
Operate across the EU under one framework
Use your EU Inc. status to open bank accounts, sign contracts, hire employees, raise investment, and operate in any EU country under the same legal structure — no additional local registrations required.
Manage all filings from the central EU register
All ongoing compliance, annual filings, and corporate changes go through the central EU register. One portal for everything, for the life of the company.
EU Inc. vs. National Company Structures: What’s the Difference?
| Feature | National Company (e.g. GmbH, BV, SAS) | EU Inc. |
|---|---|---|
| Registration time | Days to months | 48 hours |
| Registration cost | €500–€3,000+ | Under €100 |
| Minimum share capital | €0–€25,000+ (varies by country) | None |
| Multi-country operation | Separate entity per country | One entity, full EU access |
| Investment documents | Country-specific templates | Standardised EU-wide |
| Stock options | Varies wildly by jurisdiction | Harmonised EU-wide framework |
| Tax rules | National rules apply | National rules of chosen country apply |
| Employment law | National rules apply | National rules of chosen country apply |
| Liquidation process | Complex, expensive | Simplified digital procedure |
Important: EU Inc. does not change tax or employment law. National rules still apply based on where you incorporate and where your employees work. It harmonises corporate law — the structure and governance of the company — not fiscal or labour rules.
Who Should Use EU Inc.?
EU Inc. is optional, which means not every company will benefit equally from it. Here’s an honest breakdown of who it’s designed for — and who might still prefer a national structure.
Best fit: startups and scaleups with pan-European ambitions
If you’re building a product that you want to sell across Germany, France, Spain, and Poland from the beginning, EU Inc. removes significant friction. One entity covers all of it. No local subsidiaries, no separate legal teams per country, no duplicated compliance costs.
Good fit: founders looking to raise EU-wide investment
Standardised investment documentation matters more than most founders realise until they’re in a funding round with investors from three different countries each insisting on their national templates. EU Inc. standardises this across the board, which should reduce legal costs and shorten closing times for investment rounds.
Good fit: companies offering employee equity
Offering competitive stock options to engineers in multiple EU countries is currently a compliance nightmare. Different tax treatments, different vesting rules, different legal frameworks — it’s one of the reasons European tech companies struggle to compete with US firms on equity compensation. EU Inc.’s harmonised stock option framework directly addresses this.
Less relevant: local businesses with no cross-border model
A bakery in Lyon or a plumbing firm in Munich has no particular reason to use EU Inc. over a standard national structure. The benefits are primarily for companies that need to operate, hire, and raise money across multiple EU countries.
The 28th Regime: What Does That Mean?
The official Brussels terminology for EU Inc. is the “28th regime.” Understanding what this means is important for following the legislative process.
There are currently 27 EU member states, each with their own national company law. That gives founders 27 options when they incorporate. EU Inc. adds a 28th option — one that operates at the European level and works across all existing national systems simultaneously.
Crucially, EU Inc. does not abolish or replace any national structure. The German GmbH still exists. The Dutch BV still exists. The French SAS still exists. Founders can still use them. EU Inc. simply gives them an additional option that removes the need to choose between national structures when operating cross-border.
Think of it like Delaware in the United States. Over 60% of Fortune 500 companies incorporate in Delaware — not because they operate there, but because the legal framework is advantageous. EU Inc. aims to create Europe’s equivalent: a jurisdiction-neutral pan-European company form optimised for cross-border business within the single market.
EU Inc. Timeline: What Has Happened and What Comes Next
What This Means for Investors
EU Inc. is primarily a legal reform story — but it has direct implications for anyone investing in European technology companies or tracking European competitiveness as a macro theme.
Lower barriers to pan-European VC deployment
A significant portion of friction in European venture capital comes from legal complexity at the portfolio company level. When a fund invests in a company that needs to operate across five EU countries, the legal setup alone can cost $50,000 or more in fees across multiple jurisdictions. EU Inc. reduces this substantially, which should make smaller cross-border deals more economically viable.
Better equity compensation = better talent retention
European tech companies have long competed at a disadvantage against US firms on equity compensation, partly because of the fragmented legal landscape for stock options. The EU Inc. framework standardises this. Companies that can offer clean, EU-wide equity packages will compete better for technical talent, which improves long-term quality and retention across the portfolio.
More companies staying in Europe
One of the most visible symptoms of European startup fragmentation has been the tendency for high-growth companies to relocate to the US or UK for their legal structure, even when their operations and teams remain in Europe. EU Inc. removes one of the main incentives for that relocation. Keeping more companies domiciled and scaling within the EU has compound effects on the tax base, talent pools, and ecosystem density.
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EU Inc. is a strong proposal, but it’s worth being clear about what it does not solve — and where the real implementation challenges lie.
Tax harmonisation is not included
EU Inc. harmonises corporate governance rules, not tax. Different EU countries will still have different corporate tax rates, different R&D incentive structures, and different treatment of startup losses. Founders will still need to think carefully about where they incorporate from a tax perspective — EU Inc. does not make all 27 countries fiscally equivalent.
Employment law stays national
Hiring employees across EU countries remains complex under EU Inc. Labour law stays at the national level. An EU Inc. company hiring someone in Germany is still subject to German employment law, and hiring in France means French employment law. This is intentional — the Commission explicitly confirmed that national employment and social laws are not affected by the proposal.
It still needs to pass
As of April 2026, EU Inc. is a proposal, not a law. It requires agreement between the European Parliament and the Council of the EU — which means 27 national governments. There will be amendments, negotiations, and lobbying from national corporate law lobbies who may resist elements of the framework. History suggests that major EU legislative reforms often take longer than planned and emerge with compromises.
Implementation quality matters
The 48-hour registration promise depends entirely on whether the digital infrastructure is built and works as described. EU-level technical projects have a mixed track record. The central registry, the national register connections, and the digital interface need to be genuinely operational before the benefits materialise for founders.
Frequently Asked Questions About EU Inc.
Bottom Line: EU Inc. Is Europe’s Most Important Business Reform in Years
The fragmentation of European corporate law has been a well-documented competitive disadvantage for at least two decades. Every year, European startups have incorporated in Delaware, London, or Singapore partly because the EU’s internal legal complexity made pan-European operation too expensive and complicated.
EU Inc. addresses this problem directly. It won’t fix everything — tax, employment, and regulatory fragmentation are separate challenges that require separate solutions. But on corporate structure, the core plumbing that every business needs to operate, it proposes something genuinely transformative: one form, one registration, full access to 450 million consumers across 27 countries.
The legislative path ahead is real but uncertain. Agreement by end of 2026 is ambitious. Implementation quality will determine whether the 48-hour promise holds in practice. And the political dynamics of getting all 27 national governments to sign off on a reform that reduces the relevance of their domestic corporate law ecosystems should not be underestimated.
For founders, investors, and anyone building businesses in Europe: EU Inc. is worth following closely. If it passes and is implemented well, it changes the calculus for where and how to structure a European company. That’s a meaningful shift in the operating environment — and one that ATF will continue to track as it moves through the legislative process.
Sources: European Commission (March 18, 2026), eu-inc.org, Tech.eu, Euronews, CNBC, TechCrunch. This article is for informational purposes only and does not constitute legal or financial advice.
EU Inc. aims to simplify how companies operate across Europe by introducing a unified structure for startups and scaleups. This guide explains how it works, why it matters, and whether it could reshape the European business landscape in 2026.
