European Union: European Commission published proposal for a regulation on a European Union corporate legal framework

On 18 March 2026, the European Commission presented a proposal for a Regulation establishing "EU Inc.", a corporate legal framework designed to facilitate cross-border business operations within the European Union. The proposal aims to reduce legal fragmentation by providing a single set of harmonised corporate rules as an alternative to 27 national systems and over 60 different national company forms. Under the proposed framework, entrepreneurs would be able to register a company fully online within 48 hours for less than EUR 100, with no minimum share capital requirements. The Regulation introduces a single EU-level interface for submitting company information and plans for a future central EU register. It also simplifies tax and VAT identification and introduces digital procedures for liquidation and share transfers. A related Communication proposes using the European Business Wallet to support digital interactions between companies and public authorities. The European Business Wallet is designed to enable digital identity and documentation management for enterprises under the new framework. The proposal also provides for EU-wide employee stock option plans and allows Member States to grant EU Inc. companies access to stock exchanges. The Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union and will apply 12 months after that date.