EU-INC: towards a pan-European corporate form for startups 

The European Union is considering a significant step toward deeper market integration with the proposed EU-INC, a new pan-European corporate structure designed to simplify company formation and scaling across the bloc. The initiative forms part of the European Commission’s broader efforts to strengthen the EU’s competitiveness and innovation ecosystem.

Sometimes described as a “28th regime,” the framework would exist alongside the national company law systems of the EU’s 27 Member States. Instead of incorporating under the rules of a specific country, founders could choose a harmonised EU-level legal structure intended to reduce regulatory fragmentation and administrative burdens for businesses operating across borders.

The initiative is largely driven by concerns that Europe’s complex and fragmented legal environment makes it harder for start-ups to grow and attract investment compared to competitors in other global markets. Currently, companies expanding within the EU often face different incorporation requirements, governance rules and administrative procedures in each jurisdiction. The EU-INC proposal seeks to address these barriers by introducing a single corporate framework that investors and entrepreneurs could rely on across the entire EU market.

The concept also emphasises digitalisation and efficiency. Companies could potentially be established online within a very short timeframe, while benefiting from standardised governance rules and more familiar investment structures for venture capital. At the same time, the regime would not fully harmonise all areas of regulation, as key matters such as taxation, employment law and operational compliance would remain subject to the national laws of the Member States where the company operates.

The European Commission is expected to present a legislative proposal in 2026, with the first EU-INC companies potentially appearing later in the decade if the initiative receives political support. If implemented, the framework could mark an important step toward deeper integration of the EU’s single market and a more competitive environment for innovative European businesses.