EU Inc.: European Commission proposes a single corporate law for the single market

The European Commission has unveiled a new legal framework for businesses called “EU Inc.”. The aim is to establish uniform rules across the EU, thereby significantly facilitating the establishment, growth and scaling of businesses within the single market. Details of the proposal are provided by the European Commission in its official publication. The optional set of rules – also known as the “28th regime” – is intended to strengthen Europe as a location for innovative companies, start-ups and scale-ups. Our EU Funding Centre offers an overview of relevant EU initiatives for businesses.

Uniform rules instead of 27 legal systems

Companies in the EU are currently faced with 27 national legal systems and over 60 company forms. This fragmentation leads to delays, higher costs and hinders cross-border growth.

This is precisely where EU Inc. comes in: in future, a harmonised European company law will be available that companies can use voluntarily – regardless of their country of incorporation.

Set up a company in 48 hours – fully digital

A key element of the proposal is the drastic simplification of company formation:

• Set up within 48 hours
• Costs of less than 100 euros
• No minimum capital required
• Fully digital process

This will create uniform access to the single market across Europe and significantly reduce bureaucracy.

Digitalisation and central EU structures

EU Inc. is based on a consistently digital approach:

• One-time data entry (‘once-only principle’)
• EU-wide interface to commercial registers
• Planned central EU business register
• Digital processes for financing, share transfers and liquidation

These measures are intended to significantly reduce administrative burdens and facilitate investment.

Strengthening start-ups and investment in Europe

The proposal is aimed particularly at innovative companies:

• Simplified insolvency procedures for a faster restart
• EU-wide employee share ownership schemes
• Improved access to capital and stock exchanges
• More flexible share structures

EU Inc. is part of the European strategy to strengthen competitiveness and is intended to help companies grow in Europe – rather than moving to other markets.

The Single Market as a driver of growth

With EU Inc., the EU aims to unlock the full potential of the Single Market. In future, companies should be able to operate more easily in all Member States – with uniform framework conditions and fewer regulatory hurdles.

The approach follows the concept of an additional European legal framework (‘28th regime’), which complements but does not replace national systems.

National safeguards remain in place

Key point: Labour, social and tax law remain the responsibility of the Member States.

This ensures that existing safeguards – such as co-determination rights – are preserved, whilst economic integration is driven forward.

Next steps at EU level

The proposal is now being negotiated in the European Parliament and the Council of the EU. The Commission is aiming for an agreement by the end of 2026.

EU Inc. is regarded as a key project for the further development of the single market and for promoting innovation and entrepreneurship in Europe.

Relevance for Germany and Bavaria

EU Inc. opens up new opportunities for companies in Germany and, in particular, in highly innovative regions such as Bavaria:

• Easier access to the European single market
• Faster international expansion
• Improved framework conditions for start-ups and scale-ups
• More attractive investment conditions

Companies that engage with European programmes and strategies at an early stage can benefit particularly from this – for example, through targeted advice on EU funding and internationalisation.

Would you like to know how your company can benefit from EU initiatives, funding programmes or new framework conditions?

Let us advise you individually!

Natalia García Mozo
Head of Unit SME Advisory Services
Phone: +49 89 9901888-171
Email: mozo@no-spam-pleasebayfor.org