EU Inc. for startups could soon transform how companies launch in Europe. This proposed legal form allows entrepreneurs to establish a digital company across the EU in just 48 hours, with only €1 in start-up capital and no notary required.

Once implemented, the same rules will apply in all 27 member states. That means a startup based in any EU country can operate with a unified structure, eliminating the legal complexity of national borders. This initiative is part of the “28th regime” under the EU’s broader strategy to boost startups and scale-ups.

The European Commission has introduced 26 specific actions aimed at simplifying entrepreneurship, from formation to funding, and from attracting talent to scaling businesses. These measures are designed to streamline the entire startup lifecycle and make it easier to grow across the continent.

Currently, startup founders face a patchwork of notarial rules, tax systems, and employment laws that vary drastically by country. The EU Inc. movement, backed by more than 22,000 founders and investors, calls this fragmentation “national silos”, a significant obstacle that slows innovation and investment.

The IMF estimates internal EU trade barriers cost up to 44% for goods and 110% for services. Clearly, the stakes are high.

A United Framework to Unlock Growth

EU Inc. aims to reduce this friction. “We live in a time when capital and data move across borders instantly,” said Commission President Ursula von der Leyen at the World Economic Forum in Davos. “Companies must be able to move just as freely.”

Lucien Burm, chairman of the Dutch Startup Association, agrees. “We’re raising the flags higher and higher,” he said, praising EU Inc.’s standardized capital and governance rules. Currently, 90% of venture capital stays within a company’s home country. A unified framework will simplify cross-border funding and reduce legal hurdles for investors.

Boosting Cross-Border Investment

Clearer financing rules will attract more money across the EU, making the internal market more accessible not only to Europeans, but also to American and Asian investors. Burm points out that while many countries have similar startups, the standout winners often emerge later, during the scale-up phase. With EU Inc., these winners could be identified and supported earlier.

Capital will flow more efficiently, helping promising startups thrive and weeding out those less likely to succeed.

Leveling the Playing Field for Talent

The second pillar of EU Inc. targets employee participation. With standardized stock option rules, startups can attract talent from any EU country, even without offering high salaries or bonuses. This makes it easier to retain top-tier talent during early-stage growth.

However, EU Inc. is not a tax or employment regime. Taxes and labor laws will still apply at the national level. Companies will continue to pay taxes and handle HR in accordance with the laws of the country where they are based.

A Powerful Incentive for National Reform

Importantly, EU Inc. is not mandatory. Startups can still choose traditional structures, like a Dutch BV. But the new model could pressure governments to modernize. Burm warns that the Netherlands must stay competitive by improving digital infrastructure, enhancing employee stock programs, and offering better tax breaks for angel investors.

In this way, EU Inc. acts as a “stick behind the door,” encouraging reform across Europe to support startup ecosystems.

Launch Timeline: As Early As 2027

The European Commission plans to present its regulatory proposal in March. It will not be a directive — which allows national interpretations — but a regulation that applies uniformly across all member states. “Even small deviations would undermine the goal,” officials argue.

Negotiations will begin mid-year, and the first EU Inc. startups could launch by Q1 of 2027. It’s an ambitious target, admits Burm, but one worth pushing for. “Under pressure, everything becomes fluid and possible.”