Feb 3, 2026
European Commission President Ursula von der Leyen presented the EU-INC initiative at the World Economic Forum in Davos, as reported by Euronews. The plan aims to simplify startup operations across the European Union and improve the bloc’s competitiveness against the tech sectors of the US and China.
Ursula von der Leyen endorsed the initiative, legally designated as the 28th Regime, describing it as a de facto “28th state” for company registration. “Our entrepreneurs, the innovative companies, will be able to register a company in any Member State within 48 hours and fully online,” she said. She added that European startups “will enjoy the same capital regime across the EU. We need a system where companies can do business and raise financing seamlessly across Europe, just as easily as in uniform markets like the US or China.”
Addressing Fragmentation and Bureaucracy
Europe’s 27 different company law systems create hurdles for startups, including confusing digital services, strict compliance, tax delays, and conflicting stock-option policies. The alarm was raised in 2024 by former European Central Bank president Mario Draghi, who warned that overregulation and a fragmented market risk the bloc’s competitiveness.
“The idea is to have a standardised EU legal entity with a central, digital-first registry so companies (not only startups) can register fast and affordably,” said Robin Wauters, COO of European Startup Network and co-driver of EU-INC. The initiative mirrors the US corporate playbook, specifically the Delaware General Corporation Law.
Under the proposal, founders can choose to register under the EU-INC form as an alternative to existing national systems. This would allow them to form a company in 48 hours through a single EU portal, operating across all member states under a single rulebook. Expansion would no longer require additional subsidiaries or rebuilding legal infrastructure in each country.
Potential Benefits and Legislative Path
The system aims to unify investment opportunities by providing a single, consistent corporate entity for investors to review. Hiring talent across borders should also become simpler, as companies could use the same equity and administrative workflows everywhere. Consumers could benefit from faster market entry for services, as illustrated by the example of fintech firm Wise, which spent 14 years setting up separate entities across multiple countries.
The European Commission is expected to present its legislative draft for the so-called 28th regime in March, with a rollout scheduled for 2027. The European Parliament has already signaled strong political backing, adopting a report on the initiative with 492 votes in favour and 144 against. Part of the reason for this support is the inclusion of safeguards for labour standards and employee participation.
Parliament is calling for the framework to be a directive rather than a regulation and prefers the name Societas Europaea Unificata (S.EU) over “EU-INC”. The proposal would shift from a unanimity requirement to a qualified majority of 15 out of 27 member states for approval. EU-INC would be a voluntary system, sitting alongside national laws, with the EU-level framework overriding national rules for companies that opt into it.
Industry Support and Previous Attempts
The initiative has received positive feedback, with a petition growing from 15,000 to over 23,000 signatures. Supporters include tech leaders like Arthur Mensch of Mistral, Anton Osika of Lovable, and Patrick Collison of Stripe, as well as companies like Wise, Klarna, and Cabify. National organizations from France, the Netherlands, Denmark, Hungary, Germany, and Austria have also backed it.
EU-INC is not the EU’s first attempt to create a single market for startups. Previous projects such as Societas Europaea (2004), European Private Company (2010), and Single-Member Company (2014) failed due to administrative burdens and a lack of unanimity.
“[The EC] now has the possibility to show, not talk, show- that they listen to the community and that they want to be bold and ambitious,” said Wauters. No official government has yet voiced its opinion on the proposal, which could impact national control over company laws and standards.
