Ireland’s EU Commissioner Michael McGrath has unveiled a new plan aimed at helping companies expand across Europe quickly by creating a single digital legal framework. The proposal, called EU Inc, would allow businesses to set up across all member states within 48 hours using one harmonised set of corporate rules.
Currently, companies seeking to scale in Europe face a patchwork of national regulations. Start-ups must comply with up to 27 different versions of company law and navigate 60 separate company forms, creating uncertainty that often drives innovative firms to relocate to the United States. EU officials say this complexity has historically discouraged investment and slowed the growth of European businesses.
Under EU Inc, companies would be able to incorporate in any member state for less than €100, with no minimum share capital requirement. Standardised articles of association would simplify setup, allowing businesses to operate immediately across borders. The system is designed to particularly support innovative start-ups and scale-up companies, which will be eligible for simplified insolvency procedures. These procedures would bypass mandatory lawyers or insolvency practitioners and would have to be completed within six months, reducing the cost of business failure and enabling founders to start again.
Mr McGrath described the initiative as a response to Europe’s declining economic competitiveness, citing reports comparing the EU unfavourably to the US and China. He highlighted that earlier attempts, such as the SE company form introduced in 2004, had failed due to high minimum capital requirements and excessive national discretion. “This proposal is fully digital, simple, flexible and quick in execution,” he said.
Officials estimate that in its first decade, EU Inc could lead to the creation of 300,000 new companies, employing 1.6 million people. About 10 percent of all new EU businesses could be launched under the framework by year ten. While EU Inc would be open to all firms, it is targeted at companies with innovative business models seeking to scale across borders.
The regulation will harmonise stock options, often used by start-ups to attract talent, though taxation rules will remain at national level. EU Inc will not interfere with labour law or union regulations, and safeguards are in place to prevent companies from exploiting the framework for tax avoidance.
The proposal will be negotiated between the European Commission, member states, and the European Parliament under a weighted majority, meaning no single country can veto the legislation. While a central EU court for disputes is not planned, national courts would be encouraged to establish procedures for EU Inc cases to ensure consistent application of the rules.
Mr McGrath said the initiative is part of a wider effort to strengthen the single market, integrate energy and financial systems, and remove internal barriers. He described EU Inc as a “now or never moment” for the bloc to support innovation and make Europe more attractive for investment.
The European Commission hopes the framework could be adopted by member states by the end of the year, marking a potential turning point for the growth of pan-European start-ups.
