EU Inc. – A new EU proposal for a common European company form

EU Inc. is a proposal for a new common company form aimed at simplifying cross-border business within the EU.

The European Commission presented on 18 March 2026 a proposal for a new corporate legal framework within the European Union ("EU Inc."). The proposal aims to simplify the establishment, operation and cross-border expansion of companies within the EU and is intended to complement, not replace, existing national company forms. The proposal is currently subject to the EU legislative process and any entry into force is likely to take place no earlier than 2027–2028.

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Why is a new company form needed in the EU?

European company law has long been characterised by differences between Member States which, despite the existence of the internal market, continue to create practical barriers for businesses operating across borders. These challenges are particularly evident in connection with expansion, capital raising and the structuring of operations across multiple jurisdictions. Against this background, the need for a more harmonised and efficient corporate framework at EU level has become increasingly apparent.

What does EU Inc. mean in practice?

EU Inc. is a voluntary company form that can be used across the EU with the aim of reducing administrative costs and creating a more uniform regulatory framework. The proposal includes, among other things:

• A new optional EU-wide company form (EU Inc.)

  A harmonised legal entity available alongside national company forms.

• Fast and fully digital incorporation

  Companies are intended to be incorporated online (in principle within 48 hours) through standardised procedures.

• Low costs and simplified formalities

  A cost cap of approximately 100 euro is proposed for fast-track registration, combined with reduced administrative requirements.

• No minimum capital requirement

  Designed to facilitate entrepreneurship and project-driven structures.

• Improved access to investment

  Harmonised rules aimed at facilitating investment and strengthening EU competitiveness.

• Simplified rules throughout the company lifecycle

  Covering incorporation, operation, capital raising and certain aspects of liquidation and insolvency.

Reflections

The proposal represents a tangible step towards addressing the practical barriers that continue to affect cross-border business within the EU. For project-intensive sectors such as real estate, construction, energy and environmental services, it may provide more efficient structuring options. The ability to incorporate companies fully digitally, within a short timeframe and at low cost, could contribute to faster project initiation, for example when establishing special purpose vehicles. A more uniform company form may also reduce administrative burdens for businesses operating in multiple Member States.

The initiative forms part of the EU’s broader efforts to strengthen competitiveness and facilitate investment, including the introduction of a so-called “28th regime” for companies. At the same time, it remains to be seen how the proposed framework will interact with national legal regimes, particularly in areas such as insolvency and liquidation. The practical impact of EU Inc. will therefore largely depend on how effectively it is implemented and the extent to which it is adopted by market participants.

It should also be noted that this is not the first attempt to introduce a common European company framework. The continued development of EU Inc. and its potential entry into force will therefore be of particular interest, and we will continue to monitor developments.

Contact us

Do you have questions about EU Inc. or other corporate law matters? We advise companies on corporate structuring, investments and cross-border operations, with particular experience in the real estate, construction, environmental and energy sectors.

Please feel free to contact us to discuss how we may assist you.

(This article reflects the legal position at the time of publication and is for general informational purposes only and does not constitute legal advice.)