EU Inc.: Understanding the Proposed 28 Regime for Simplified Company Formation

Editorial note: This article is for general information only and does not constitute legal, tax or business advice.

What is ‚EU Inc.‘?

‚EU Inc.‘ refers to a proposed fully digital company form aimed at making it easier to establish businesses across the European Union. Under this model, entrepreneurs could register a company online within 48 hours for a fee of up to 100 EUR, without the need for minimum capital requirements. The initiative intends to foster innovation by lowering entry barriers for business creation.

Importantly, ‚EU Inc.‘ would offer limited liability for its members and be available across all EU member states, making it the so-called 28th regime alongside the existing national company laws of the 27 member countries. To ensure closer ties within the EU, at least one member of the company’s board must reside in any EU country.

Key Features and Benefits

Fully Digital Setup: Registration and administrative procedures would be conducted online, streamlining company formation.
Low Cost: The process is expected to be affordable, with fees capped at around 100 EUR.
No Minimum Capital: Entrepreneurs would not have to provide a minimum share capital, reducing financial barriers.
Employee Incentives: Companies could implement share option plans, allowing employees to gain a stake in the company’s success.
Flexible Share Types: Different categories of shares could be registered digitally, facilitating investment.
Digital Insolvency Procedures: For start-ups facing insolvency, quick and fully digital processes are envisioned to help entrepreneurs recover swiftly.

What is the 28 Regime?

The ’28 Regime‘ is a term describing the addition of this EU-wide company law option to the existing 27 national company laws. It aims to provide a simpler and harmonized alternative rather than replacing national regulations. This means businesses will have the choice to operate under EU Inc. rules if it suits their cross-border ambitions.

Current Status and Outlook

Following a report by the European Parliament in January 2026 calling for new frameworks to support innovative companies, the European Commission introduced the EU Inc. proposal in March 2026. Currently, the European Parliament and the Council of the European Union are reviewing and negotiating the legislative proposal. Both institutions aim to reach an agreement by the end of 2026 that supports growing businesses effectively across the EU.

It is important to note that the EU Inc. form is not yet available and remains under discussion. Entrepreneurs interested in cross-border business should continue to rely on existing national regulations while monitoring developments related to this initiative.

Conclusion

The proposed ‚EU Inc.‘ and the related 28 Regime represent a significant step toward simplifying and digitalizing company formation in the European Union. If adopted, it could make the EU a more attractive place for entrepreneurs, investors, and talented professionals. However, businesses should remain aware that this initiative is still under negotiation and not yet implemented.

Frequently Asked Questions

Frequently Asked Questions about EU Inc. and the 28 Regime

What is EU Inc.?
EU Inc. is a proposed digital company form designed to allow easy and fast company registration throughout the EU with limited liability and no minimum capital.
What does the ’28 Regime‘ mean?
It refers to the EU Inc. being an additional, harmonized company form alongside the existing national company laws across all 27 EU countries, hence the 28th regulatory option.
Is EU Inc. currently available for company formation?
No, it is currently a legislative proposal undergoing discussion and has not yet been implemented.
What are the advantages of EU Inc.?
Advantages include fully digital registration, affordability, no minimum capital, flexible share options, and streamlined insolvency procedures for startups.
When might EU Inc. become available?
The European Parliament and Council aim to finalize the legislation by the end of 2026, but exact timing depends on the legislative process.
Do companies under EU Inc. need a board member residing in the EU?
Yes, the proposal requires at least one board member to have an EU residence to ensure connection to the Union.