SUMMARY:

• The European Commission has presented its proposal for “EU Inc.”, a new optional and harmonised EU-wide corporate legal framework. The initiative, marked as a starting point for the Union's 28th regime, aims to simplify business operations across the Single Market by providing a single set of corporate rules, reducing fragmentation across national systems.
• Members can find the press release here.

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MORE INFORMATION:

EU Inc. envisions a single, harmonised corporate framework that companies can opt into instead of navigating 27 national legal systems and more than 60 company forms. It is intended to facilitate cross-border expansion, reduce administrative burdens, and eventually allow European entrepreneurs "to create a company within 48 hours, from anywhere in the European Union, and fully online".

Some key features of the proposal include:

• The introduction of a “once-only” principle through a single EU interface connecting national business registers;
• Reformed corporate processes, which would be digital by default throughout the company lifecycle (which the proposal aims to cover entirely), including registration, reporting, and liquidation.
• The introduction of simplified procedures for share transfers, improved access to financing, and EU-wide employee stock option schemes, aimed at attracting and retaining talent;

The initiative responds to longstanding concerns from businesses regarding cross-border legal fragmentation, identified as a key barrier by a large majority of stakeholders. It is positioned as a central element of the EU’s competitiveness agenda, with the objective of creating a more attractive environment for entrepreneurs and investors. Member States are also encouraged to establish specialised courts to handle EU Inc.-related disputes.

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NEXT STEPS:

The EU Inc. proposal will now be examined by the European Parliament and the Council under the ordinary legislative procedure, with the Commission aiming for an agreement by the end of 2026.

FESI will continue to monitor the legislative process and assess potential implications

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