The EU is increasingly exploring ways to reduce fragmentation within the Single Market and make Europe a more attractive place to start, scale, and invest in innovative companies. One of the most closely watched ideas in this debate is the development of a so-called “28th regime”, also referred to as “EU Inc.”, which would create a harmonised, optional EU-wide corporate framework for businesses operating across borders. The European Commission notably proposes that a new company can be created anywhere in the EU within 48 hours, for less than EUR 100 and through digitalised processes, using the “EU Inc.” company form.
To support stakeholders in understanding this proposal, Accountancy Europe has published a new factsheet outlining the key concepts, features and other key elements of the proposed Regulation. It provides an accessible overview of what the “28th regime”/EU Inc. proposal entails and the policy rationale driving the initiative.
The idea behind a “28th regime” is to establish a single set of EU-level rules that companies could voluntarily opt into instead of navigating 27 different national legal systems. In doing so, such a framework could help reduce administrative burdens, simplify cross-border operations, facilitate access to capital, and strengthen Europe’s competitiveness in strategic sectors such as technology, clean tech, and innovation-driven industries.
The initiative is gaining political momentum in the context of broader discussions on the future of the Single Market, the Savings and Investments Union (SIU), and Europe’s long-term economic resilience. Policymakers increasingly recognise that regulatory fragmentation can create barriers for scaling businesses across the EU, particularly for start-ups and high-growth companies seeking to compete globally.
As a next step, both the European Parliament and the Council need to provide their positions on what the Commission has proposed, and eventually reach a compromise agreement on the text that will then eventually become EU law. The co-legislators are aiming for a final agreement by the end of 2026. The final version of the proposed Regulation may differ from what the Commission has proposed, and therefore of what the factsheet describes.
