EU Inc. proposal aims to let founders incorporate across Europe in 48 hours for under €100
What's the deal? The European Commission has proposed EU Inc., a unified corporate framework that would allow entrepreneurs to incorporate a company anywhere in the EU within 48 hours, for less than €100, with no minimum share capital requirement. The proposal forms the cornerstone of the EU's so-called 28th regime — an optional, digital-first set of corporate rules sitting alongside existing national frameworks. The Commission is calling on the European Parliament and Council to reach agreement on the proposal by end of 2026.
The initiative has the backing of over 22,000 founders, investors, and ecosystem participants. Key features include EU-wide employee stock option plans, simplified share transfers without mandatory intermediaries, and streamlined insolvency procedures to help founders wind down and restart faster.
Why now? European startups currently face 27 national legal systems and more than 60 company forms when expanding across borders. The Draghi Report, published in 2024, flagged this fragmentation as a direct drag on EU competitiveness. Recent geopolitical pressures — and the growing gap between European and US tech companies — have added urgency to the reform agenda.
For companies like Pleo, the pan-European fintech, the proposal is long overdue. Its chief executive Jeppe Rindom said expansion today requires different partners, structures, and processes in each market — much of it still analogue — and that EU Inc. could have enabled faster scaling and more direct competition with US rivals.
What could go wrong? Labour unions are already pushing back. Oliver Roethig of UNI Europa, representing seven million service sector workers, warned that allowing companies to choose their country of incorporation could enable them to cherry-pick jurisdictions with lower labour standards, undermining national protections. The Commission says existing social and employment law will continue to apply, but the tension is real and could slow parliamentary progress.
Some in the startup community are also sceptical about the scope. BAD1, a Berlin-based founder initiative, described the proposal as "a single login screen over 27 fragmented legal systems" — useful, but not the structural overhaul the ecosystem was hoping for.
The signal: EU Inc. is the most concrete step the EU has taken in years to reduce the structural disadvantage European startups face at scale. The ability to incorporate once, access the full single market, and offer competitive equity to talent removes three of the most cited friction points for founders choosing between Europe and the US. Whether it achieves its ambition depends heavily on implementation — and on whether member states apply it in spirit as well as letter. If it works, it could meaningfully shift the calculus for founders deciding where to build.
Sources:
TechEU
European Commission
Sifted
A.M.
