EU Inc. – a new supranational European limited liability company

On 18 March 2026, the European Commission published a proposal for a regulation introducing a “28th regime” corporate legal framework: the EU Inc.

The EU Inc. introduces a new type of limited liability company governed directly by an EU Regulation. As a supranational legal form, the EU Inc. will exist alongside the national corporate forms of the 27 Member States and will apply uniformly across the EU without the need for national implementing legislation. The objective is to reduce legal fragmentation, facilitate cross-border activity and improve access to financing within the internal market.

The EU Inc. is primarily aimed at small and medium-sized enterprises (SMEs), with a particular focus on innovative and high-growth companies such as startups. However, the proposed Regulation does not impose substantive eligibility requirements based on company size or sector. As a result, the EU Inc. may in principle be used by any company, provided that at least one director is resident in an EU Member State. The proposed framework seeks to provide a flexible corporate structure accommodating investor participation and facilitating private ordering of governance and economic rights. By providing a harmonised legal form, the EU Inc. aims to lower transaction costs, enhance legal certainty, and improve scalability for companies operating across multiple Member States.

The key objectives of the EU Inc. include:

reducing legal and administrative barriers for companies operating across multiple Member States;
improving access to venture capital and cross-border investment;
enhancing legal certainty through a harmonized corporate framework;
strengthening the competitiveness of European startups; and
promoting innovation and scaling within the EU internal market.

To facilitate fast and accessible company formation across the European Union, the EU Inc. will offer:

incorporation within 48 hours, fully online;
one centralised EU business register, ensuring transparency and accessibility across Member States;
standardised articles of association and investment documentation, reducing legal complexity and transaction costs;
a harmonized European Employee Stock Option Plan (ESOP) framework, supporting talent participation and aligning incentives within innovative companies.

Tax, employment law and directors’ liability matters remain governed by national law. However, the European Commission has also proposed a harmonised framework for the winding-up of insolvent EU Inc. companies, applicable only to innovative startups.

The publication of the proposal marks the beginning of the legislative process. We will continue to monitor developments closely and provide updates as the proposal progresses.