European Union: European Commission closes consultation on proposal for a directive establishing a single harmonised set of rules for innovative companies across the EU (28th regime)

On 30 September 2025, the European Commission closes the consultation as part of its call for evidence for an impact assessment on a proposal for a directive establishing a single harmonised set of rules for innovative companies across the EU (28th regime). The initiative aims to address the fragmentation of corporate legal frameworks across EU Member States, which creates compliance and procedural challenges for cross-border operations, particularly for start-ups and scale-ups. The absence of a common EU-level company identity also affects visibility and creates uncertainty for potential investors. There are three main policy options under consideration, of which any combination may be adopted, to reduce administrative burdens. First, the creation of a new category of business is proposed called the "28th regime company", for which these mechanisms of efficiency in registration would be made available. It could include parameters for who can set up such a company, the type of company, and the essential elements of a "28th regime company". Second, it is proposed that the EU strive to enable 28th regime companies to be created or closed within 48 hours. Such a proposal is to include the utilisation of existing digital registration tools in conjunction with an exploration of the mechanisms of flexible business governance. Third, the exploration of means for attracting investment to 28th regime companies. It may include the use of digitalisation of investment, mechanisms to attract investors, and exploration of share transfer methods.