With her push for "EU Inc.," European Commission President Ursula von der Leyen sent a clear signal in Davos: The European Union wants to make it much easier to start a business and strengthen the single market as a unified economic area. In the future, it should be possible to start a business completely digitally within 48 hours—based on a single set of European rules that apply in all 27 member states.
The vision behind this is clear: less fragmentation, more scalability. Until now, many European start-ups, scale-ups, and companies with expansion plans have been hamstrung by a patchwork of national special rules. EU Inc. aims to remove these very hurdles by harmonizing capital, corporate, and regulatory standards. Von der Leyen explicitly positions the initiative as a response to structural competitive disadvantages vis-à-vis the US and China.
For founders, investors, and international companies, this means that Europe could suddenly become more attractive. A uniform legal framework creates predictability, accelerates start-up processes, and reduces legal pitfalls in cross-border expansion. The EU Commission's formal proposal is expected as early as March.
What investors, founders, and companies with expansion plans should consider
- Legal form: The EU Inc. is to be established as a private limited liability company. The personal assets of shareholders remain protected, and their financial risk is limited to the capital they invest.
- Minimum capital: There will be no minimum capital requirement, making the structure accessible to start-ups and small businesses.
- Share classes: The company should be able to issue multiple share classes (e.g., common or preferred shares) with different rights, including dividend, voting, conversion, and liquidation privileges.
- EU register – fully digital process: The formation process is fully digital, allowing founders to register online, verify their identity, and complete all formalities. This enables a fast, low-cost process – with formation fees of less than €100 and completion within 48 hours.
- EU ESOP: An EU-supported employee stock option program is also intended to help smaller, high-growth companies attract and retain talent.
- Taxation: EU Inc. aims to simplify cross-border business activities. While a "28th regime" could enable a uniform tax framework at the EU level, member states retain full sovereignty over tax rates, collection, and enforcement.
- Dispute resolution: Disputes should first be resolved through alternative dispute resolution mechanisms to keep proceedings quick and cost-effective. If no agreement is reached, cases will be referred to national courts. Ideally, a dedicated EU-wide fast-track court system for EU Inc. matters should be established under the 28th regime to ensure fair, efficient, and proportionate outcomes.
What does this mean for start-ups, scale-ups, and expanding companies—and where does Taylor Wessing provide support?
As great as the potential of EU Inc. is, the transition to a new European corporate regime will be challenging. The EU is just getting started here. Legal structuring decisions, labor law consequences, and integration into existing organizational models must be carefully prepared.
Taylor Wessing is keeping an eye on developments for you. We are partners for start-ups, scale-ups, and expanding companies and will also support you in this pan-European development.
