EU Inc.

EU Inc.: The New European Company Form Expected from 2027

The European Commission has proposed a new EU-wide company form called the EU Inc., aimed at simplifying cross-border business within the EU. Planned for introduction in 2027, it offers a fully digital registration process, no minimum capital requirement, and a harmonized legal framework complementing national laws.

Information article No legal or tax advice

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

Introduction to the EU Inc.

On March 18, 2026, the European Commission presented a draft regulation to establish a new European company form, known as the EU Inc. This initiative aims to create a unified legal framework for companies operating within the European Union, simplifying cross-border operations.

Structure and Formation

The EU Inc. is envisaged as a capital company with limited liability and independent legal personality. It can be founded by one or more individuals and does not require minimum share capital.

Key features include:

Fully digital registration process to be completed within 48 hours.
An EU-wide standardized online form for company formation.
Registration possible through national trade registers or a centralized European interface.
Use of standardized articles of association to ease setup.
A requirement that both the legal seat and main administration are located within the EU.
Automatic data sharing with relevant authorities (tax, social security) under a „Once Only“ principle.

Benefits within the Single Market

The EU Inc. will facilitate business expansion by:

Allowing branches to register in any member state via a single online form within 48 hours.
Charging fees capped at 100 euros for such registrations.
Eliminating various national requirements like translation duties, additional disclosures, and notarization.
Reducing administrative burdens, particularly beneficial for growth-oriented enterprises and startups.

Relationship with National Laws

The regulation envisages extensive harmonization of company law aspects such as formation, structure, capital, and dissolution. However, areas outside the harmonized scope, including labor, tax, social security, and insolvency law, will continue to be governed by national legislation.

Notably, the draft includes a special, streamlined insolvency process designed for innovative startups with digital procedures and simplified conditions.

Timeline and Outlook

Following the proposal, discussions in the European Parliament and Council are expected to commence promptly, aiming for an agreement before the end of 2026. Consequently, the first EU Inc. companies could be established starting in 2027.

The initiative enjoys strong political priority and is primarily aimed at startups but will be accessible to all companies.

Frequently Asked Questions

Frequently Asked Questions about EU Inc.

What is the EU Inc.?

The EU Inc. is a proposed new European company form designed to provide a harmonized legal framework for businesses operating across EU member states.

When will the EU Inc. be introduced?

The European Commission aims to enable company formations under the EU Inc. from 2027, subject to approval by the European Parliament and Council.

What are the key features of the EU Inc.?

It offers fully digital registration within 48 hours, no minimum share capital requirement, and easier cross-border branch registrations with capped fees.

Does the EU Inc. replace national company laws?

No, the EU Inc. complements national laws with harmonized rules in core company law areas, while other domains like tax and labor law remain under national jurisdiction.

Who can found an EU Inc.?

One or more individuals or entities can establish an EU Inc., provided the company’s legal seat and main administration are within the EU.