{"id":166658,"date":"2026-03-19T09:06:38","date_gmt":"2026-03-19T08:06:38","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=166658"},"modified":"2026-03-19T09:06:38","modified_gmt":"2026-03-19T08:06:38","slug":"commission-presents-proposal-for-eu-inc","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/commission-presents-proposal-for-eu-inc\/","title":{"rendered":"Commission presents proposal for EU Inc."},"content":{"rendered":"<p style=\"text-align: justify;\">Last March 18, the European Commission presented its proposal for EU Inc., a new single set of corporate rules, building the cornerstone and starting point for the\u00a0EU&#8217;s 28<sup>th<\/sup>\u00a0regime. EU Inc. is an optional, digital-by-default European corporate framework. It will make it easier for businesses to start, operate and grow across the EU \u2013 incentivising them to stay in Europe, and encourage those who once looked elsewhere to return.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2019\/01\/business-camera-coffee-1509428-e1548234273600.jpg\" width=\"510\" height=\"333\" \/><\/p>\n<p style=\"text-align: justify;\">Last March 18, for far too many entrepreneurs and innovative companies, expanding across EU borders means navigating a fragmented corporate legal landscape. European innovative companies are faced with 27 national legal systems and more than 60 company legal forms. This complexity can delay the setting-up of a company for weeks or even months, slowing growth, raising costs and discouraging scale.<\/p>\n<p style=\"text-align: justify;\">EU Inc. is at the heart of the Commission&#8217;s response to these challenges: coming in the form of a regulation, it will provide a\u00a0single harmonised set of corporate rules\u00a0that companies can choose instead of navigating multiple national regimes, unlocking the true potential of the Single Market.<\/p>\n<p style=\"text-align: justify;\">The Draghi Report highlighted the urgent need to focus on improving the EU&#8217;s competitiveness, including by making it easier for innovative companies to scale up in Europe. Announced in the Commission&#8217;s\u00a0political guidelines for 2024 \u2013 2029\u00a0and President\u00a0von der Leyen&#8217;s\u00a0SOTEU speech, the EU Inc. proposal aims to reduce fragmentation, boost EU competitiveness, and respond to the needs of innovative companies.<\/p>\n<p style=\"text-align: justify;\">President Ursula\u00a0von der Leyen\u00a0said: \u201c<em>Europe has the talent, the ideas and the ambition to become the best place for innovators. Yet today, European entrepreneurs who want to scale up face 27 legal systems and more than 60 national company forms. With EU Inc., we are making it drastically easier to start and grow a business all across Europe. Any entrepreneur will be able to create a company within 48 hours, from anywhere in the European Union, and fully online. This crucial step is just the beginning. Our goal is clear: one Europe \u2013 one market \u2013 by 2028.<\/em>\u201d<\/p>\n<p style=\"text-align: justify;\">Given its key importance for the EU&#8217;s prosperity, the Commission calls on the European Parliament and the Council to reach an agreement on the EU Inc. proposal by the end of 2026.<\/p>\n<p style=\"text-align: justify;\">Main features of EU inc. include:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Faster registration: Entrepreneurs, founders, and companies will be able to found an EU Inc. company\u00a0within 48 hours,\u00a0for\u00a0less than \u20ac100\u00a0and with no minimum share capital requirements.<\/li>\n<li>Simpler procedures: EU Inc. companies will only need to submit their company information once, via an\u00a0EU-level interface\u00a0connecting national business registers together. In a second step, the Commission will establish a new\u00a0central EU register. EU Inc. companies will obtain their tax identification and VAT numbers without having to resubmit paperwork.<\/li>\n<li>Fully digital operations: Corporate processes will be digital by default throughout a company&#8217;s lifecycle.<\/li>\n<li>Helping founders restart faster and cheaper: EU Inc. companies will have access to\u00a0fully digital\u00a0liquidation procedures.\u00a0Innovative startups will have access to\u00a0simplified insolvency procedures\u00a0to facilitate the winding down of operations. This enables founders to try and test innovative ideas and start again if needed.<\/li>\n<li>Better conditions to attract investment: Today&#8217;s proposal will remove in-person formalities, provide digital procedures for financing operations, and simplify the transfer of shares. There will be no more mandatory involvement of intermediaries for share transfers, and liquidation procedures.The proposal will also allow Member States to give EU Inc. companies access to the stock exchange.<\/li>\n<li>Better means to attract talents:\u00a0EU Inc. companies will be able to set up EU-wide employee stock option plans. The stock option will only be taxed on the income generated once it is sold. This is a crucial factor in ensuring attractiveness, particularly for innovative startups.<\/li>\n<li>Full access to the Single Market:\u00a0EU Inc. companies will be free to choose the Member State in which they incorporate.\u00a0The proposal includes a blacklist of prohibited practices to ensure that EU Inc. companies are treated the same way as any other national companies.<\/li>\n<li>Strong safeguards against abuse:\u00a0National employment and social laws are not affected by the proposal. They will apply to EU Inc. the same way they apply to any other business under national company law. The applicable safeguards of the Member State of registration will apply in full to the EU Inc. company, including when it comes to rules regarding co-determination.<\/li>\n<li>Flexibility of shares:\u00a0EU Inc. companies will have the flexibility to create different classes of shares with varying economic or voting rights. This can, for example, help founders protect their business against hostile takeovers.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">In addition, the Commission is adopting today a\u00a0Communication\u00a0outlining the ongoing and future initiatives to complete the 28<sup>th<\/sup>\u00a0Regime in other policy areas.<\/p>\n<p style=\"text-align: justify;\">The Communication proposes\u00a0maximum digitalisation\u00a0of interactions between companies and public authorities, for example with the\u00a0European Business Wallet.<\/p>\n<p style=\"text-align: justify;\">The Communication also calls on Member States to consider setting\u00a0up specialised judicial chambers or courts\u00a0with the authority to handle disputes on EU Inc. company law, allowing for an effective, efficient and uniform application of the EU Inc. rules.<\/p>\n<p style=\"text-align: justify;\">The Commission will further\u00a0explore the possibility to allow 100% cross-border telework for innovative start-ups and scale-ups\u00a0across the Union with the forthcoming Fair Labour Mobility Package.<\/p>\n<p style=\"text-align: justify;\">The Communication also announces measures for access to capital for startups and scaleups, building on the measures of the\u00a0Savings and Investment Union, a potential revision of investment rules of pension fund, and the upcoming review of the\u00a0European Venture Capital Funds. On taxation, the Commission has proposed a\u00a0Head Office Tax (HOT)\u00a0system that would allow small and medium-sized enterprises (SMEs) to apply the tax rules of their home country. In addition, the\u00a0Business in Europe: Framework for Income Taxation (BEFIT)\u00a0initiative aims to establish a single legislative framework for corporate taxation in the EU. The upcoming Omnibus simplification package on direct taxation is expected to remove additional administrative burdens of the EU businesses.<\/p>\n<p style=\"text-align: justify;\">Finally, the Commission was adopting last March 18 a Recommendation on definitions of innovative enterprises, innovative startups and innovative scaleups. The Recommendation will ensure a coherent approach across the EU to ensure better monitoring of EU policies on businesses, providing certainty for companies, investors and decision-makers in the process.<\/p>\n<p style=\"text-align: justify;\"><strong>Next steps<\/strong><\/p>\n<p style=\"text-align: justify;\">The EU Inc. proposal will now be discussed by the European Parliament and the Council. The Commission will do its utmost to support the co-legislators in this respect with the clear objective to reach an agreement by end of 2026.<\/p>\n<p style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify;\">The EU Inc. is a key deliverable of EU&#8217;s competitiveness agenda and one of the main initiatives to support companies, in particular start-ups and scale-ups, to innovate and grow in the Single Market.<\/p>\n<p style=\"text-align: justify;\">EU Inc. does not replace national company frameworks. It is an optional harmonised company framework available across the EU available to all companies.<\/p>\n<p style=\"text-align: justify;\">Building on the analysis of\u00a0Mario Draghi&#8217;s report on the future of European competitiveness,\u00a0the Commission presented the\u00a0Competitiveness Compass in January 2025. The goal of this new roadmap is to restore Europe&#8217;s dynamism and boost our economic growth. EU Inc. was announced as part of these actions to enhance the competitiveness of the European economy, with an aim to make it possible for innovative companies to benefit from a single, harmonised set of EU-wide rules, including any relevant aspects of corporate law, insolvency, labour and tax law.<\/p>\n<p style=\"text-align: justify;\">Subsequently, the\u00a0March 2025 European Council\u00a0conclusions called on the Commission to: \u201c<em>propose an optional 28th company law regime allowing innovative companies to scale up<\/em>\u201d. More specifically, the\u00a0Savings and Investments Union, the\u00a0Single Market Strategy\u00a0and the\u00a0Start-up and Scale-up Strategy, respectively, set out a list of measures aiming to mobilise private investment, strengthen access to finance, complete the Single Market a reality and boosting the growth of innovative companies in the EU, and underlined the crucial role that EU Inc. will play in achieving these aims.<\/p>\n<p><strong>For more information: <a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_26_614\">European Commission<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last March 18, the European Commission presented its proposal for EU Inc., a new single set of corporate rules, building the cornerstone and starting point for the\u00a0EU&#8217;s 28th\u00a0regime. EU Inc. is an optional, digital-by-default European corporate framework. It will make it easier for businesses to start, operate and grow across the EU \u2013 incentivising them [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[16942,346,4088],"tags":[722,1846,8788,16887,672,17931,1488,368,404,2788],"class_list":{"0":"post-166658","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-companies","8":"category-eu-news","9":"category-market","10":"tag-business","11":"tag-companies","12":"tag-competitiveness","13":"tag-corporate-law","14":"tag-entrepreneurship","15":"tag-eu-inc","16":"tag-european-commission","17":"tag-european-union","18":"tag-innovation","19":"tag-news","20":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commission presents proposal for EU Inc. | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cde.ual.es\/en\/commission-presents-proposal-for-eu-inc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commission presents proposal for EU Inc. | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda\" \/>\n<meta property=\"og:description\" content=\"Last March 18, the European Commission presented its proposal for EU Inc., a new single set of corporate rules, building the cornerstone and starting point for the\u00a0EU&#8217;s 28th\u00a0regime. 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