With the proposal for “EU Inc.” presented on March 18, 2026, the European Commission aims to remove structural barriers in the single market and significantly simplify the process of founding a business and conducting cross-border business activities for European companies. The initiative is part of the update to the Single Market Strategy and is intended to make the European single market more attractive as a business location as well as to strengthen it.
What Happened
The Draghi Report, published in September 2024, outlined various strategies for sustainable economic growth in Europe. The report’s key areas included strategic measures to close the innovation gap with the U.S. and China and to strengthen the EU’s competitiveness. The report emphasized the need to make it easier for innovative companies to expand, thereby strengthening the EU’s single market and competitiveness.
The proposal for EU Inc. is at the heart of the Commission’s response to these challenges. EU Inc. is an optional, digitally oriented European corporate framework designed to make it easier for companies to establish, operate, and enter markets within the single market – while also providing incentives for companies to choose European locations or encouraging to return to them.
The Challenges EU Inc. Aims to Address
To date, accessing the single market or expanding across borders has exposed European companies to a highly fragmented landscape comprising 27 national legal systems and more than 60 company forms. This results in significant administrative burdens and costs, particularly due to the need to engage various consultants from different member states. For startups and SMEs, this can be overwhelming and significantly delay the establishment of subsidiaries and market entry in other EU member states.
EU Inc., coming in the form of an European regulation, is intended to establish a single harmonised optional set of rules that functions as a supranational “28th regime” alongside the 27 national legal systems that companies can chose instead of navigating multiple national regimes. Instead of the national regulations of the member states, the EU Inc. Regulation will apply to EU Inc. companies – regardless of which member state the companies are based in.
At the same time, the Commission makes it clear that national regulations of the Member States – particularly in tax, social security, and labor law (including the right to co-determination) – will continue to apply to prevent any potential abuse of EU Inc..
Key Elements of the Proposal for EU Inc.
- Fast Registration and Simplified Incorporation Procedures for European Companies
- Companies will be able to be founded within 48 hours, for less than € 100 and with no minimum share capital requirements.
- EU Inc. companies will only need to submit their company information once, via an EU-level interface connecting national business registers (such as the German Handelsregister, the Dutch Kamer van Koophandel or the French Registres du Commerce et des Sociétés) together. In a second step, the Commission will establish a new central EU register.
- All corporate processes will be digital by default. All processes are to be conducted digitally. Even though the proposal does not yet contain any statements regarding potential notarial formal requirements for German EU Inc. companies, the notarization of articles of association as well as the notarial certification of registration applications, is likely to be difficult to reconcile with the “one-stop digital system” envisaged by the Commission and the announced 48-hour incorporation process. At the latest with the introduction of an EU-wide business register, the requirement for notarial certification for the registration of facts subject to registration should therefore be eliminated.
- Facilitation of Cross-Border Expansions
The proposal includes measures designed to significantly lower barriers to market entry in other EU countries:
- Standardized business information (EU Business Certificate) to simplify registration and reporting requirements in other EU countries.
- Uniform transparency and disclosure requirements for business data.
- Improved interoperability of existing business registers.
For companies operating in multiple EU Member States, such standardization should lead to a noticeable reduction in administrative burdens and compliance requirements.
- Improved Access to Investment and Financing
The Commission is also addressing existing structural barriers to investment. In particular, measures are planned to facilitate cross-border investment, such as standardized documentation and information requirements for investments and financing rounds. These measures are intended to provide greater legal certainty for investors and growth-oriented companies when making cross-border investments.
- Flexibility of Shares
EU Inc. companies will have the flexibility to create different classes of shares with varying economic or voting rights. According to the Commission, this can, for example, help founders protect their businesses against hostile takeovers.
Next Steps
The EU Inc. proposal will now be discussed by the European Parliament and the Council. The regulation is expected to be adopted by the end of 2026.
Conclusion and Recommendations for Action
EU Inc. is a structural reform proposal with a clear focus on reducing bureaucracy, digitalization, and growth orientation. For companies operating across the EU, the corporate framework is likely to result in reduced administrative burdens, more harmonised regulatory requirements, and faster market processes, at least in the medium term.
Companies should begin assessing now whether a potential future EU Inc. entity would offer strategic advantages for planned cross-border expansions or market entries, and whether their existing structure is suitable for this purpose. It also makes sense to standardize key incorporation and corporate governance documents early on and make them available digitally, to prepare for future expansion without delays. Finally, companies operating internationally should analyze their cross-border registration and compliance processes to determine whether a harmonized European corporate framework could simplify operational procedures in the future.
