‘EU Inc.’: a speedboat or a trawler in the competition between legal forms?

There are currently around 60 different national legal forms in the European Union – ranging from the German GmbH and the Dutch B.V. to the French S.à.r.l. and the Italian S.r.l. At the same time, there is a growing exodus of companies from the EU, particularly to the US and the UK.

Against this backdrop, on 18 March 2026 the European Commission presented a proposal for a regulation comprising 109 articles, designed to introduce a new, uniform European legal form: the EU Inc. The legal form is primarily aimed at innovative companies and start-ups but is in principle open to everyone. The aim is to facilitate start-ups, promote scaling and enhance the attractiveness of the single market for investors. The regulation is set to enter into force 12 months after its publication in the Official Journal of the EU.

Key features of EU Inc.

The EU Inc. is designed as a private limited company whose registered office and place of business must be located within the EU. Legally, it is governed by a three-pronged framework comprising the EU Regulation, the articles of association and national law. It can be established either as a new company or by converting an existing EU company – entirely digitally and within 48 hours. Set-up costs are capped at a maximum of €100; no minimum capital is required. All company information is recorded in a central EU Inc. register, with the application simultaneously triggering registration in the commercial register, with the relevant social security authorities and in the transparency register. Conceptually, the EU Inc. combines elements of the limited liability company (GmbH) – in particular freedom of articles of association and the right to issue instructions – with those of a public limited company (Aktiengesellschaft), namely flexibility regarding share classes, free tradability of shares and the possibility of stock market listing. The governing bodies are a board of directors and a general meeting of shareholders; a supervisory board or advisory board may be established optionally. Shareholders’ meetings and resolutions may, in principle, be conducted digitally or in a hybrid format. The involvement of a notary is not required either for the formation of the company or for the transfer of shares; shareholdings are recorded in a new digital register (Digital Register of Shares). Furthermore, the proposed regulation addresses financing instruments such as SAFE, KISS and employee share schemes, as well as rules governing initial public offerings (IPOs). Taxation continues to be governed by national law; upon registration in the EU Inc. Register, an EUID, tax identification number and VAT number are automatically assigned in accordance with the ‘once-only’ principle.

Procedures and challenges

The aim is to reach an agreement in the European Parliament and the Council of the European Union by the end of 2026. Differences in national implementation are to be expected and are likely to trigger competition to become the most attractive location within the EU. The EU Inc. promises a significant simplification for entrepreneurs and investors in the single market. However, it remains to be seen whether the new legal form will improve access to capital and overcome existing regulatory hurdles. For Germany in particular, challenges arise in the areas of employee participation, the scope of checks carried out by the EU register (instead of a notary), the speed of opening bank accounts, and anti-money laundering compliance.

Conclusion

The EU Inc. has the potential to prove itself a speedboat in the international competition between legal forms – whether it does will depend not least on how decisively Germany drives its implementation.