EU Inc: A new legal era for European businesses?

On 20 January 2026, at the World Economic Forum in Davos,  European Commission President Ursula von der Leyen reaffirmed the Commission's intention to create EU Inc, a truly pan-European company structure enabling businesses to operate seamlessly across all member states under one standardized legal framework.

This marks a significant step towards resolving a longstanding challenge:  although the EU's internal market theoretically provides access to 450 million consumers,  expanding across member states still means navigating 27 different legal and administrative regimes.

EU Inc therefore aims to address this by creating a “28th regime”: one unified and flexible corporate structure that would exist alongside national company forms and provide a single, streamlined alternative for companies seeking to operate entirely across the EU.

Unlike the existing Societas Europaea (SE), which was introduced in 2004 but achieved limited adoption due to complexity and high formation costs, EU Inc is designed to be simpler, faster, and more accessible. Previous attempts at creating pan-European structures, including the European Private Company (EPC) in 2010 and the Single-Member Company (SUP) in 2014, failed to gain sufficient political support. 

The question is whether EU Inc can succeed where these predecessors fell short. While the Commission's endorsement provides significant political momentum, substantial obstacles remain:

• Legislative Complexity: EU Inc will likely require an EU Regulation to ensure direct applicability across all member states without national transposition, a politically sensitive shift.
• The limited success of the SE serves as a cautionary tale. Despite its pan-European scope, the SE has been adopted by only a small number of companies due to its complexity and limited advantages. EU Inc must demonstrate genuine, tangible benefits to justify the transition.

EU Inc must be understood within the broader context of European competitiveness concerns. The September 2024 Draghi Report highlighted the EU's declining position as a competitive economic power compared to powers such as the United States and China, citing regulatory fragmentation and limited access to risk capital as key obstacles.

The goal of this new legislative initiative is to enable companies to operate across Europe as easily as businesses do in uniform markets like the US or China. Without such structural changes, Europe risks continued migration of talent and capital to more integrated jurisdictions.

Rapid Digital Formation: Entrepreneurs shall be able to register an EU Inc in any member state within 48 hours through a fully online process, eliminating notarial requirements and significantly reducing formation costs.

Unified Governance Framework: A single set of rules would govern the structure of the management body, shareholder rights, capitalization requirements, and reporting obligations across all EU member states, eliminating the need to adapt to different national regimes as companies expand.

Cross-Border Mobility: EU Inc entities would be able to relocate their registered office from one member state to another without dissolution and re-incorporation, providing flexibility for scaling businesses.

Reduced Administrative Burden: Operating under one standard would eliminate the duplication of effort and compliance costs associated with navigating multiple jurisdictions, freeing resources for growth and innovation.

The European Commission is expected to present a formal legislative proposal in the coming months, which will then proceed through the ordinary legislative procedure involving both the European Parliament and the Council. Given the complexity and the need for consensus among 27 member states, the timeline for implementation remains uncertain.

The proposal will likely draw on sector-driven initiatives, including the EU-Inc Policy Proposal developed by a coalition of European entrepreneurs, investors, academics, and legal professionals. However, translating these ideas into workable legislation that satisfies diverse national interests will be challenging.