The European Commission on Wednesday unveiled its long-trailed “EU Inc.” proposal, a new EU-wide corporate framework designed to simplify rules, attract investment and make it faster and cheaper for companies to start, scale and operate across the bloc. The initiative, presented as the cornerstone of a broader “28th regime”, is meant to tackle long-standing fragmentation in the Single Market and strengthen Europe’s competitiveness by offering companies a single, optional set of rules alongside national systems.
Commission President Ursula von der Leyen framed the move as a step change for the EU’s business environment, pointing to the burden companies face navigating multiple legal systems.
“EU creates a single European company framework. It is one simple set of rules that works across our entire single market of 450 million consumers.”
Single rulebook to replace fragmented systems
For decades, companies expanding across borders in the EU have had to navigate a patchwork of national systems, slowing growth and raising costs. Businesses currently face 27 legal regimes and more than 60 company forms.
“It will make it drastically easier to start and to grow a business in Europe. Any entrepreneur will be able to create a company within 48 hours … fully digitalised, for less than €100… and without minimum share capital,” Ms von der Leyen said.
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The EU Inc. framework would allow firms to opt into a harmonised system, enabling them to register quickly and operate across borders without repeated administrative procedures.
“It will make it drastically easier to start and to grow a business in Europe. Any entrepreneur will be able to create a company within 48 hours … fully digitalised, for less than €100 … and without minimum share capital.” — Ursula von der Leyen, President of the European Commission
How the system would work in practice
At the core of the proposal is the “once only” principle, meaning companies should submit their data a single time, with that information automatically shared between authorities across the EU. “Companies will provide their information … one time only. And that information will then be shared automatically between relevant administrations,” the Commission president said.
The system would be supported by a central EU business register and a European business wallet, allowing companies to operate across borders without duplicating paperwork.
“Companies will provide their information … one time only. And that information will then be shared automatically between relevant administrations.” — Ursula von der Leyen, President of the European Commission
Digital, talent-focused and built for scaling
The proposal also seeks to improve access to talent and capital, including through simplified stock options and faster insolvency procedures.
“In business, failure should not be the end of the road … With EU Inc. we want to reward entrepreneurship and make it less risky,” she added. Fast-track insolvency rules are intended to allow founders to restart more easily while maintaining protections for workers.
“In business, failure should not be the end of the road … With EU Inc. we want to reward entrepreneurship and make it less risky.” — Ursula von der Leyen, President of the European Commission
Commission: key step for competitiveness
Alongside EC President von der Leyen, commissioners presenting the file described the initiative as central to improving Europe’s ability to scale companies. Henna Virkkunen said the proposal marks “an important step to strengthen Europe’s competitiveness and also advance the single market,” describing EU Inc. as “a game changer.”
Ekaterina Zaharieva said many startups still feel compelled to relocate.
“All of them want to stay in Europe. But at least a third of them … feel pressed to leave Europe.”
Michael McGrath said fragmentation continues to weigh on businesses.
“You’re faced with 27 national legal systems and … more than 60 different company forms … This bureaucracy delays setting up, it raises costs … and ultimately it slows growth.”
Part of broader competitiveness push
The initiative is part of a broader push in Brussels to address Europe’s competitiveness gap, following warnings — including in the Draghi report — that barriers within the Single Market continue to hold back innovation and investment.
The Commission argues that reducing administrative complexity and creating a single EU-wide framework could help companies grow faster and remain in Europe rather than expanding elsewhere.
As Ms von der Leyen put it, the goal is to make Europe a place where companies can start, grow and stay — “one Europe, one market.”
The proposal will now be negotiated by the European Parliament and member states, with the Commission pushing for an agreement by the end of 2026 — an ambitious timeline for a file that has been discussed for years but which the Commission would like to now move at warp speed ahead.
