The European Commission has announced plans to introduce a new optional company structure designed to simplify how startups operate across the EU.
The initiative, referred to as EU Inc., was presented by European Commission representatives during the World Economic Forum in Davos and is intended to function as a so-called ‘28th regime’ alongside existing national corporate frameworks.
According to the Commission, the proposed structure would allow companies to incorporate and operate across EU member states under a single legal framework governed by EU law. Officials from the European Commission indicated that the objective is to reduce administrative friction for startups looking to expand beyond their home markets and to make cross-border fundraising and operations more straightforward.
The proposal follows sustained advocacy from the EU-Inc policy movement, which has been campaigning since late 2024 for the creation of a pan-European legal entity. The group, supported by more than 22,000 founders, investors, and startup employees, submitted detailed legal proposals to the Commission earlier this year and has engaged with EU institutions and national governments on the issue.
Scope and structure of the proposed EU Inc framework
EU Inc is seen as a voluntary framework rather than a replacement for national company laws. Important elements under consideration include a single EU-level legal entity, a centralised digital registry operating in English, standardised investment documentation, and a harmonised stock option regime that could be applied consistently across borders.
European Commission officials stated that the framework is intended to enable companies to register fully online within a short timeframe and to operate under the same capital and governance rules throughout the bloc. The wider aim, according to the Commission, is to allow European startups to raise capital and conduct business across member states with a level of simplicity closer to that seen in larger single markets.
Representatives from EU-Inc welcomed the announcement, describing it as a significant opportunity to address long-standing regulatory fragmentation in Europe, while noting that the effectiveness of the regime will depend on how many member states choose to adopt it.
