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EU Unveils Unified Corporate Framework 'EU Inc.' for Startups and Innovators

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The European Commission has proposed a new, unified corporate legal regime called 'EU Inc.', aiming to create a single set of EU-wide rules for companies. This initiative, announced in the January 2025 Competitiveness Compass, is designed to strengthen the EU's economic competitiveness by simplifying business operations. The framework will replace fragmented national systems, offering faster, cheaper, and fully digital company registration (within 48 hours for a maximum fee of EUR 100) and streamlined procedures throughout a company's lifecycle. EUR 100 and 48 hours are critical figures highlighting the regime's focus on accessibility and efficiency. Digital share transfers and support for modern financing instruments are also key features, alongside fully digital insolvency procedures and automatic data transmission to authorities, adhering to the 'once-only principle'. Employee stock options will benefit from harmonized deferred taxation to attract talent.