The European Commission has taken a significant step towards creating a genuine European corporate framework with its proposal for “EU Inc.”, presented on the 18th of March 2026. The initiative, which forms part of the so-called “28th regime”, aims to offer companies a common corporate structure through which to operate in the single market without having to navigate many of the differences currently existing between the laws of the 27 Member States.
The proposal addresses one of the structural challenges facing the European economy: although the Single Market should, in principle, enable businesses to operate throughout the European Union, the legal landscape remains significantly fragmented in practice. According to the Commission, there are currently 27 national corporate law systems and more than 60 different corporate forms, which can make it more difficult for companies to incorporate, raise finance and expand across borders.
EU Inc. seeks to reduce this fragmentation through an optional, harmonised and digital-by-default corporate regime, aimed in particular at startups, scaleups and companies with international growth ambitions.
What is “EU Inc.”?
EU Inc. would be a new European corporate form, available as an alternative to national corporate forms. It would not replace the companies currently available in each Member State: entrepreneurs would still be able, for example, to incorporate a Spanish limited liability company under Spanish law.
The fundamental difference would be that an EU Inc. company would be subject to a harmonised set of European rules governing key aspects of its operation, which should make cross-border activities significantly easier.
The Commission proposes that incorporation could be carried out entirely online, within 48 hours and at a maximum cost of €100, with no minimum capital requirement.
The objective is for a company to have a genuinely European dimension from the outset, rather than having to progressively adapt its corporate structure to different national legal systems as it enters new markets.
A Response to Single Market Fragmentation
The main justification for EU Inc. is economic, but the proposed solution is essentially legal.
A Spanish startup seeking to operate in France, Germany, Italy or the Netherlands currently has to deal with different corporate rules and procedures, registers, documentary requirements and administrative practices. This fragmentation can increase the costs of expansion and make transactions more difficult than they should be within a Single Market.
The Commission’s impact assessment specifically identifies the fragmentation of corporate rules as one of the factors hindering the creation, expansion and financing of European startups and scaleups. The European Parliament has also highlighted that the initiative seeks to address these barriers through a common corporate regime applicable throughout the internal market.
EU Inc. therefore seeks to bring a straightforward principle to the corporate law sphere: a company operating in Europe should be able to do so under sufficiently uniform rules, without having to rebuild its legal structure every time it crosses a border.
Fully Digital Incorporation and Management
One of the most innovative aspects of the proposal is its emphasis on digitalisation.
The incorporation of an EU Inc. company is envisaged as a fully digital process. The proposal also contemplates the use of digital tools throughout the company’s lifecycle, including transactions involving shares and certain corporate actions.
The initiative further provides for EU Inc. companies to use a European Business Wallet to store, share and manage digital business documentation, such as certificates and powers of attorney.
Another notable element is the use of artificial intelligence-based translation tools for certain cross-border administrative procedures, with the aim of reducing language barriers and simplifying companies’ interactions with the authorities of other Member States.
These measures could significantly change the way companies with international operations are incorporated, managed and documented.
Financing, Shares and Stock Options
The proposal pays particular attention to one of the major challenges facing innovative European companies: access to finance and the ability to attract talent.
EU Inc. is intended to facilitate financing transactions and the digital transfer of shares, as well as certain instruments commonly used by startups and high-growth companies. The Commission also envisages the possibility for Member States to allow these companies to access public capital markets.
Of particular relevance is the proposed optional common stock option regime for employees, accompanied by harmonised tax treatment based on deferred taxation. The aim is to make it easier for companies to use equity participation as a tool to attract and retain talent.
This could be particularly relevant for technology startups and companies competing internationally for highly skilled professionals.
Does EU Inc. Mean That Spanish Companies Will Disappear?
No. EU Inc. is designed as an optional regime that complements national corporate forms, providing an alternative for business projects for which having a European corporate framework from the outset may be more efficient.
For a company whose activities will remain primarily focused on Spain, a Spanish limited liability company may continue to be an entirely appropriate option. By contrast, for a startup planning to raise investment from different Member States, recruit international teams or expand rapidly across several European markets, the European regime could offer significant advantages.
Nor should EU Inc. be confused with the creation of a completely uniform corporate law system across the European Union. The Commission has made clear that national rules will continue to play an important role, particularly in areas such as employment law. The safeguards provided under the legislation of the relevant Member State would continue to apply to EU Inc. companies. This means that choosing an EU Inc. structure would not automatically eliminate all the regulatory differences faced by a company operating across several countries.
Key Point: The Proposal Is Not Yet Law
EU Inc. is not yet a corporate form that can be used to incorporate a company.
The Commission presented the proposal for Regulation COM(2026) 321 on the 18th of March 2026, and legislative procedure 2026/0074(COD) is still ongoing.
The Commission has stated its objective of having the European Parliament and the Council reach an agreement on EU Inc. during 2026. However, the final text may still undergo changes during the legislative process.
Companies currently considering a particular corporate structure should therefore continue to make their decisions on the basis of the law currently in force.
An Opportunity That Will Require Legal Planning
EU Inc. could become one of the European Union’s most significant corporate law initiatives of recent years. Its importance lies not only in the creation of a new legal form, but also in the attempt to adapt European corporate structures to an economy in which companies are incorporated, raise investment, recruit talent and sell products simultaneously across several countries.
Ultimately, EU Inc. points towards a paradigm shift: moving from a Single Market in which companies must operate across 27 different corporate law frameworks to a model in which, at least for certain companies, there is an opportunity to operate under a single European corporate framework.
Therefore, for startups, scaleups and investors with clear international ambitions, closely monitoring the development of this proposal will be a strategic matter, and not merely a legislative one.
Shameem Hanif Truszkowska
Vilá Abogados
For more information, please contact:
21st of August 2026