On May 18, 2026, the European Commission proposed a game-changer for entrepreneurs: the EU Inc. (where “Inc.” stands for Incorporated, the term commonly used in North America for corporations).
This initiative follows the “Draghi Report” of September 2024, which highlighted that having 27 different sets of national laws makes it too complicated and expensive to start or grow a business across Europe.
What is the EU Inc.?
Currently, there are over 60 different types of companies across the 27 EU member States, each with its own old-fashioned and specific rules.
The EU Inc. will be a new, “28th” type of limited liability company. Instead of following the specific (and often confusing) laws of just one country, it will be governed by one set of EU rules that are the same everywhere.
A “Universal Rulebook” (The 100+ Articles)
To ensure the EU Inc. works exactly the same way in every country, the proposal includes a comprehensive “code” of over 100 legal articles. This is a major breakthrough because:
- Identical Management Rules: Whether your company is based in Rome, Paris, or Berlin, the rules for appointing a director, making big decisions, or selling shares will be exactly the same.
- Flexibility for Investors: The rules allow for different “classes of shares” (for example, giving some investors more voting power). This makes it much easier to attract funding without the founders losing control of the business.
- Handling Difficulties: If the business runs into trouble or needs to close down, there will be fast, uniform procedures across Europe, avoiding the long and costly delays of national bureaucracies.
Why is this better? (Coming in 2027)
If approved, starting an EU Inc. is designed to be incredibly simple:
- Fully Online: You can set it up via the internet in just 2 days.
- Low Cost: Registration fees are expected to be under €100.
- Minimal Capital: You can start with as little as €1.
- No Notary Required: If you use the standard EU forms, you can skip the expensive and time-consuming notary process.
Why is this a “New” Novelty?
In the past, Europe tried to create “European Companies” (like the SE or GEIE), but they were mostly failures because they were too complex. Out of 33 million businesses in the EU, only a few thousand actually use them. The EU Inc. aims to be different by focusing on digital simplicity and being accessible to everyone, from small startups to large firms.
In short: Starting in mid-2027, the EU Inc. is designed to let you run a business across borders without needing to hire a lawyer for 27 different legal systems.
