At this year’s World Economic Forum, European Commission President Ursula von der Leyen publicly unveiled what has since been colloquially branded “EU Inc” (formally the 28th Regime), as part of a desire to strengthen the EU’s competitiveness and reduce fragmentation in corporate law. Created and vouched for by founders, investors and other private individuals and entities across the EU, EU Inc aims to create a single, optional EU-wide legal entity for some companies, that would function across all 27 member states under harmonised rules and a central digital incorporation system. Founders would, in theory, be able to register a company online in 48 hours and operate seamlessly across the EU when fully implemented.
Momentum and Past Initiatives
Support within the Commission and parts of the European Parliament is strong and visible. The 28th regime is included in the Commission’s 2026 work programme, with a legislative proposal scheduled for March 2026.
But the EU’s track record here is mixed. Attempts to harmonise corporate law have failed, such as the European Company (SE) (already in its third decade of existence), European Private Company (a 2008 initiative that was withdrawn due to little political support), or Single-Member Company (an initiative that still exists technically on EU institutions’ agenda). This occurs although EU Institutions themselves have highlighted that there is legal basis in the EU’s founding treaties for a wide alignment on multiple topics even outside corporate law, such as labour law, taxation, or insolvency.
When Can We Expect EU-Inc to Become a Reality?
After the formal proposal in March 2026, the ordinary legislative procedure could take at least a couple of years before the regime is adopted. Following adoption, further technical work and coordination with member states would be required before EU-Inc becomes a practical tool.
As part of the legislative process, as parts of the initial proposal might be rooted in domestic law, pushback from Member States is likely where EU-Inc overlaps perceived sovereign domains.
EU-Inc’s success also hinges on EU institutions’ ability to build and manage a centralised digital infrastructure, the likes of which would be required to function across 27 jurisdictions.
The Reality To Which Founders and Investors Should Prepare
EU-Inc is framed as an optional regime, not a replacement of national legal forms. This optionality means that enforceability and uptake will depend heavily on how attractive and operational the new regime is in practice. Expected reduced administrative friction in incorporation and cross-border growth once EU-Inc is live shall be, most likely, balanced by issues such as tax treatment, labour compliance, and creditor rights that might still require national navigation.
Tudor is a tech lawyer with over 10+ XP, having co-founded the oldest continually active Romanian law firm that works exclusively on tech projects (part of Ventures’n’Law). Previous community builder in the space of legal and fintech, having founded and led the Romanian Fintech Association.
