“EU Inc.”: towards a new-generation European company for start-ups?

On 18 March 2026, the European Commission unveiled its proposal for a regulation creating a brand-new corporate form, named “EU Inc.”. Nicknamed the “28th regime”, this status would sit alongside the 27 national company laws. An analysis of a text that could, in time, be a game-changer for young innovative companies.

A “28th regime”: why this name?

The Union today has 27 national company laws. The Commission’s idea is not to harmonise them, but to offer an optional European status that would coexist with them: a 28th regime, which entrepreneurs could freely choose in place of their national corporate form.

The stated objective is competitiveness. In line with the Letta and Draghi reports on the future of the single market, the Commission wants to remove the obstacles to the cross-border growth of European start-ups and scale-ups, all too often held back by the diversity of rules from one country to another. The proposal is also accompanied by a recommendation defining what an “innovative company” is.

A company designed for young ventures

Several features of the “EU Inc.” bring it close to the expectations of the start-up ecosystem:

— Limited liability and great flexibility. The form can be single-member (a single shareholder, whether an individual or a legal entity) and offers significant freedom in drafting the articles of association, comparable to that of the French SAS (simplified joint-stock company).

— A share capital that may be set at zero euros. The protection of creditors would no longer rest on a minimum capital, but on solvency and balance-sheet tests.

— Almost instantaneous and fully digital incorporation. Online registration through a single form, the “only once” principle (information is provided only once), issuance of a European certificate, all within two days maximum and for a cost capped at €100.

— Modern governance. A management board (which may have a single member), meetings held by videoconference or by written consultation, fully dematerialised securities and the possibility of issuing preferred shares.

Points to watch

The ambition of the text also calls for some reservations.

First, its interplay with national laws remains a delicate matter. The “EU Inc.” would be governed primarily by the regulation, then by its articles of association, and only on a default basis by the national law of the State of its registered office, with each State having to designate a “reference” corporate form to fill the gaps in the text.

Next, history calls for caution. Several projects for a European corporate form (the European private company, in particular) never came to fruition. The success of the “EU Inc.” will depend on its ability to offer genuine legal certainty, and not merely a promise of simplicity.

Finally, the zero-euro capital and certain mechanisms (such as the shareholder’s right of withdrawal in the event of “oppression”, inspired by Anglo-Saxon law) mark a break with our traditions and will raise practical questions.

What now?

At this stage, this is only a proposal: it must still go through the European legislative process, and its content may change. The Commission has set the objective of reaching an agreement by the end of 2026.

For founders and investors, the text deserves to be followed closely: if it is adopted, the “EU Inc.” could become a particularly attractive tool for structuring and fundraising at the European level.