The European Commission has just taken a historic step. On March 18, 2026, it officially presented its legislative proposal for EU Inc., a new pan-European legal structure that promises to fundamentally transform how companies are created and grow across the European Union. For SMEs long held back by administrative complexity and regulatory fragmentation of the single market, this represents a major paradigm shift.
What is EU Inc.?
EU Inc. — also known as the "28th regime" — is an optional corporate legal framework designed to operate uniformly across all 27 EU member states. Unlike existing structures such as the Societas Europaea (SE), which primarily targets large listed companies, EU Inc. is specifically designed for SMEs, startups, and entrepreneurs who want to operate at European scale without multiplying local legal entities.
The concept is as simple as it is ambitious: a single company, registered once, recognized everywhere in Europe. This project, backed by a coalition of over 22,000 signatories — founders, investors, and representatives of the European entrepreneurial ecosystem — has resulted in a concrete proposal now entering the European legislative process.
What EU Inc. Changes in Practice
Incorporation in 48 hours for under €100
One of the most striking features of EU Inc. is the speed and low cost of incorporation. It will be possible to create a European company in 48 hours, for under €100, with a share capital of just one euro — the lowest threshold ever proposed for a European legal structure.
No more notary appointments, blocked capital deposits, document translations, or in-person procedures. The entire process is digital, completable from anywhere in the world, in English, with no physical presence required on European territory.
For an SME considering international expansion, this represents a significant saving in time and money compared to current procedures, which can span several weeks and require costly legal counsel in each target country.
A single filing for 27 countries
Today, an SME wishing to establish itself in several European countries must set up local subsidiaries, navigate multiple different legal systems, maintain separate accounts, and manage multiple tax obligations. This administrative burden represents a real barrier to expansion.
With EU Inc., the company registers its information just once, via a centralized European interface connecting national business registries. The company receives its tax identification and VAT numbers without having to resubmit paperwork country by country. A considerable operational efficiency gain, especially for SMEs with limited administrative resources.
EU-FAST: Standardized investment documents
EU Inc. comes with a standardized contractual framework called EU-FAST (Founders' Agreement Standard Terms). These are harmonized investment documentation templates, valid across all member states.
In practice, this means an SME raising funds will no longer need to adapt SAFE (Simple Agreement for Future Equity) documents to the local law of each investor. Terms are the same across Europe, reducing legal fees and accelerating fundraising cycles.
EU-ESOP: Simplified employee ownership
Another notable innovation is the EU-ESOP (European Employee Stock Ownership Plan), a harmonized framework for employee share schemes. For an SME employing staff across several European countries, this is a significant step forward. Until now, offering stock options to employees in different member states meant navigating often incompatible tax and social security legislation. The EU-ESOP unifies these rules, making pan-European employee ownership finally workable.
Why This Is a Strategic Opportunity for SMEs
Reducing expansion costs
The cost of entering a new European market is currently disproportionate for an SME. Legal fees, incorporation costs, management time: estimates vary, but setting up a local subsidiary in a European country commonly runs to several thousand euros and several weeks of administrative work. Multiply that figure by the number of target markets and you understand why many SMEs forgo internationalization or pursue it too late.
EU Inc. radically changes this equation. A single structure, reduced fixed costs, centralized management: economies of scale become accessible even to modestly sized companies.
Attracting talent and investors at European scale
Operating under a unified European legal framework makes a company more readable and credible to international investors and partners. Similarly, the ability to offer harmonized stock options via EU-ESOP facilitates recruitment of talent in other European countries without the usual tax constraints.
Get positioned before it comes into force
The European Commission has called on Parliament and the Council to finalize the legislation by end of 2026. The first registrations under the EU Inc. regime are expected in early 2027. For SMEs considering European expansion in the short to medium term, it is strategically relevant to prepare now: understand the framework, assess its applicability to your current structure, and identify the opportunities this new entity creates.
What to Watch For
EU Inc. is still a legislative proposal. Its final adoption will depend on negotiations between member states and the European Parliament. Several points remain to be clarified, particularly regarding taxation (which remains a national competence) and applicable labor law.
It is also important to note that EU Inc. is an optional regime: it does not replace existing national legal structures but complements them. Companies will be free to choose whether to adopt this framework or retain their local entities depending on their situation.
Conclusion: A Strong Signal for the Future of European SMEs
EU Inc. is much more than an administrative simplification. It is a strong political signal in favor of a truly integrated internal market, where an SME based in Lyon or Barcelona can compete on equal terms with a company from Frankfurt or Amsterdam, without legal borders constituting a structural handicap.
For SME leaders thinking about European-scale development, EU Inc. deserves serious attention. Those who understand this framework from the moment it comes into force will be best positioned to take advantage of it.