At the World Economic Forum in Davos, European Commission president Ursula von der Leyen announced the launch of EU Inc, a new legal structure designed to make it easier for startups and scale-ups to operate across Europe. The proposal introduces an EU-wide corporate entity – the so-called “28th regime” – allowing companies to register once and operate in all 27 EU member states under a single framework.
“Too many companies have to look abroad to grow and scale up, partly because they face a new set of rules every time they expand into a new member state. So, while on paper the market of 450 million Europeans is open to them, it’s far more complicated in reality. And that acts as a handbrake on the growth and profit potential of companies,” said Von der Leyen.
EU Inc promises a central EU registry, standard investment terms and a harmonized approach to employee stock options. This should lower the administrative burden for cross-border expansion and fundraising. It’s an optional structure that will exist alongside national regimes, but its unified rules could be especially attractive for fast-growing tech startups navigating fragmented legal systems.
Von der Leyen also touched upon the Savings and Investment Union to deepen the integration of capital markets and the Energy Union to lower energy prices.
