On 18 March 2026 the European Commission put forward a proposal to introduce “EU Inc.” as part of what is known as a “28th regime”. The aim is to align the conditions for companies in the EU single market and to make cross-border activity considerably easier. For start-ups, SMEs and internationally growing businesses in particular, the proposal could be of substantial practical relevance in future.
The problem it is meant to solve
Companies operating in several EU member states currently have to observe numerous different national rules. That applies to company law, insolvency law, employment law and tax law in particular. In practice it frequently leads to multiple registrations, parallel administrative structures and greater organisational and financial effort.
EU Inc. is intended to create a new European legal framework giving companies a more uniform structure for activity in the single market.
What EU Inc. is
EU Inc. is a proposal for a new European company form intended to give businesses operating across borders a simpler and more digital way of organising themselves within the EU. The model forms part of a “28th regime”, that is an additional European legal framework alongside the existing national company forms.
The aim is not to replace the national systems entirely but to create an additional option for companies operating internationally within the EU or looking to expand.
The simplifications planned
Under the Commission’s current proposal, EU Inc. is intended to bring the following simplifications in particular:
Digital incorporation in a short time
It should be possible to incorporate an EU Inc. entirely digitally. The proposal provides for incorporation within 48 hours, at low cost and with no minimum capital requirement.
Company data would in future be submitted only once. On that basis the relevant identification numbers would be assigned automatically, tax registrations included.
Harmonised rules across the whole company life cycle
Uniform rules are planned from incorporation through to dissolution. They include simplified digital insolvency proceedings and standardised models for employee participation.
Access to European tax initiatives
EU Inc. is to be linked to existing EU tax instruments, such as the Head Office Tax (HOT) system for small and medium-sized enterprises and BEFIT.
Do national rules continue to apply?
Yes. According to what the Commission has said so far, national rules on employment, social security and tax will continue to apply. In those areas the law of the member state in which the EU Inc. is registered remains decisive in principle.
In other words: even if the corporate structure becomes more uniform in future, national rules on taxation, social security and employee protection remain relevant.
What it means for companies operating across borders
For companies operating across borders, EU Inc. could bring a noticeable simplification. Instead of building separate national structures in several member states, a single company form could be used.
For growth-oriented companies, start-ups and internationally organised groups in particular, that would be a possible advantage. At the same time it remains essential that national tax and social security requirements are examined and met separately.
What happens next
The Commission’s proposal is currently going through the European legislative process. As things stand, agreement between the European Parliament and the Council is being sought by the end of 2026.
Whether EU Inc. will actually be introduced, and what the final form will look like, therefore remains open. Even now, though, it is clear that the subject can become strategically relevant for companies operating internationally.
Where this leaves us
With EU Inc. the European Commission is pursuing the aim of making company formation and cross-border activity within the European Union simpler, more digital and more efficient. For companies the proposal could open up new options for structuring, expansion and administrative simplification.
At the same time it remains to be seen what the final legislation will look like and how it will interact in practice with national tax, employment and social security law.