Today (18 March 2026) the European Commission presented a proposal known as EU Inc., which aims to create a unified framework of rules for doing business in the EU. The goal is to eliminate the current fragmentation of the business environment, which hampers the development of enterprise. The startup community has long been calling for such a step.
What is the main idea?
The main idea of EU Inc. is to make it easier to set up and run companies across the whole union, while also making Europe a more attractive place to establish companies.
Ursula von der Leyen, President of the European Commission, commented on the proposal as follows: „Europe has the talent, the ideas and the ambition to become the best place for innovators. Yet today, life is made difficult for European entrepreneurs who want to grow by the fact that there are 27 legal systems and more than 60 national company forms. By introducing the new EU Inc. legal form, we will make it significantly easier to establish and grow businesses across Europe. Every entrepreneur will be able to set up a company within 48 hours, from anywhere in the European Union and fully online. And this landmark step is just the beginning. Our goal is clear: one Europe – one market – by 2028."
The form of a regulation
The new regulation is to offer a unified set of rules that companies will be able to choose voluntarily instead of national legal regimes. The regulation is directly applicable, so no separate national legislation is needed (except for ensuring compliance and the matters envisaged by the regulation, which states must regulate at national level).
A number of important matters will continue to remain at national level - for example taxation, employment law or specific corporate rules - and it will be necessary to align national legislation with this regulation.
The proposal focuses on the following nine key areas:
- Fast and inexpensive registration
A company with the EU Inc. legal form will be possible to set up online within 48 hours, for less than EUR 100 and without the need for share capital. - Unified and simple submission of documents
Companies will submit information only once through an EU interface that will connect national registers. A central EU register will be created later. Companies will automatically obtain a tax identification number as well as a VAT identification number. - Full digitisation of processes
All actions throughout the life of the company will take place online. - Easier closure and a fresh start
EU Inc. will offer fully digital liquidation and, for innovative businesses, also simplified insolvency proceedings. Founders can thus wind up a project and start a new one more quickly. - Better conditions for investment
The need to handle matters in person will be reduced, online financial operations will be enabled and share transfers will be simplified without mandatory intermediaries. In addition, states may allow EU Inc. companies to go public. - Easier attraction of talent
Companies will be able to introduce EU employee stock option plans with taxation deferred until the shares are sold — a major advantage for startups. The Czech Republic has already moved in this direction on this point, and this year the Income Tax Act includes a new ESOP regime – employee stock option plans. The benefit of this regulation will be the harmonisation of ESOP conditions. - Free choice of country of registration
EU Inc. companies will choose any EU country in which to be entered in the register. The proposal also contains a list of prohibited practices, so that they receive the same treatment as national companies. - Protection against abuse
The proposal in no way changes national employment and social law — it applies to EU Inc. just as it does to other companies. All national safeguards also apply, including co-determination rules. - Flexible share structure
EU Inc. can create different classes of shares with different rights, which makes it possible, for example, to better protect the company against a hostile takeover.
How will the proposal help Czech entrepreneurs?
Will this new form be mandatory?
Will a new commercial register be created?
The Commission will create a single EU interface through which EU Inc. companies will record their data and submit the required information only once. This interface will connect the national commercial registers. Once the proposal enters into force, companies will be able to register immediately through this system. The Commission will subsequently set up a central EU register that will collect data on all companies in the EU, regardless of their state of establishment.
What are the next steps?
The proposal now awaits discussion in the European Parliament and the Council. The Commission wants to reach an agreement by the end of 2026. The final wording is therefore not yet known.
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