The European Commission presented a proposal for a harmonized corporate form called 'EU Inc.' on March 18, 2026, according to officials. The proposal aims to make it easier for companies to start and grow within the EU by choosing the new corporate form instead of national ones. It is described as a '28th regime' - an alternative to the 27 EU member states' national regulations. As a regulation, the rules become directly applicable in all EU member states. European Commission President Ursula von der Leyen stated that the proposal makes it easier to start and develop a company across Europe, adding that Europe has the talent, ideas, and ambition to become the best place for innovators, but entrepreneurs face 27 legal systems and over 60 national corporate forms, which EU Inc. aims to address.
The European Commission predicts 300,000 new European companies and 1.3 million new jobs within ten years with the new rules, according to major media reports. The proposal includes that registering companies should take only two days and cost 100 euros, major media reports indicate. The new business model is expected to save time and billions for innovators, according to major media. The specific legal or bureaucratic barriers the proposal aims to eliminate beyond registration time and cost remain unclear.
The European Commission hopes that startup companies will stay and grow in Europe, officials said. The proposal aims to stop fast-growing startups from leaving the union, according to multiple reports. It is a digital framework for digital startups that makes the rules the same across the entire union, multiple reports indicate. The timeline for the proposal's adoption and implementation across the EU is not yet specified.
The proposal is a voluntary set of rules for companies alongside member states' own laws, according to major media. BusinessEurope welcomes the proposal and believes the initiative is a positive development for competitiveness on the internal market, the organization said. According to Breakit, Anton Osika described the proposal as potentially a big step for Europe. How the '28th regime' will interact with existing national corporate forms in practice is an open question.
The proposal has been a dividing line among various actors, with businesses celebrating, trade unions concerned, and politicians divided, officials noted. Which member states or political groups oppose the proposal and their specific objections are not detailed. Ursula von der Leyen emphasized that the EU Inc. proposal will respect existing social standards and labor law, including employees' right to participate in corporate boards, with strong safeguards to ensure such rules are applied. How the proposal will ensure compliance with national labor laws while offering a unified corporate form is among the unknowns.