Europe wants to stop losing startups to the United States. And to do that, it’s proposing a radical shift: a single company model that works across the entire European Union.
The initiative, led by the European Commission, is known as “EU Inc.” or the “28th regime.” Its goal is simple but ambitious: allow entrepreneurs to create a company valid across all EU countries under one unified legal framework.
Today, the problem is clear.
Entrepreneurs must navigate 27 different legal systems and dozens of company structures. This fragmentation slows down growth, increases costs, and makes scaling across Europe unnecessarily complex.
The new proposal aims to eliminate that friction.
Under “EU Inc.”, founders could:
- Register a company in under 48 hours
- Pay less than €100 in setup costs
- Complete the entire process online
- Operate across the EU under a single set of rules
This is a major shift.
It means moving from a fragmented system to a truly unified market for startups and innovative companies.
The framework also introduces key improvements.
It includes harmonized rules for employee stock options—critical for attracting talent—along with simplified procedures for share transfers, financing, and even company closure.
The strategy is clear: make Europe more competitive.
Despite producing many startups, Europe still lags behind the U.S. in creating billion-dollar companies. The Commission hopes this model will encourage founders to stay, scale, and build globally from within Europe.
However, there are limits.
The system will be optional, meaning companies can still choose national structures. And key areas like taxation, labor law, and social regulations will remain under each country’s control.
Even so, the potential impact is significant.
If approved by the European Parliament and member states, “EU Inc.” could reduce bureaucracy, accelerate company creation, and make Europe a more attractive place to build and grow a business.
The conclusion is clear: Europe is trying to reinvent its startup ecosystem.
And if this model succeeds, it won’t just simplify company formation…
it could redefine how businesses scale across an entire continent.
