If you have ever tried to start a company in Europe, you know the drill. Every country has its own rules, its own paperwork, its own costs. And if you want to do business in more than one EU country? Good luck navigating that maze. Well, something just changed. On March 18, 2026, the European Commission officially proposed EU Inc. and it could be one of the most practical things the EU has done for ordinary people and small businesses in years.
Here is what it actually means, in plain language.
So What Exactly Is EU Inc.?
Think of EU Inc. as a brand new type of company that belongs to Europe, not to any single country. Instead of choosing between a French SARL, a German GmbH, a Spanish SL, or whatever your country calls it, you get one European option that works everywhere.
The Commission calls it the «28th regime» because the EU has 27 member states, each with their own company laws. EU Inc. is the 28th option, and it sits on top of all of them. You do not have to use it, but it will be there for anyone who wants it.
According to the European Commission’s official announcement, once registered, your EU Inc. company operates under one set of rules with full access to the single market across all 27 member states.
The Numbers That Matter
Let’s get straight to the good stuff. According to the official Commission proposal, here is what EU Inc. offers:
- Register your company in 48 hours, fully online
- Pay a maximum of €100 in registration fees
- No minimum share capital required (yes, you read that right)
- Submit your information once and your tax ID and VAT number are issued automatically
- Digital share transfers and capital operations
- Fully digital insolvency procedures
- Valid across all 27 EU member states
No notary. No piles of paperwork. No waiting weeks for a response. Just a real company, registered online, in two days.
Who Is EU Inc. Actually For?
Freelancers and solopreneurs: have you been putting off registering a proper company because it felt too complicated or expensive? EU Inc. is basically designed for you. Get legal protection, access to EU funding, and a real business structure without the headache.
Small business owners: if you sell to customers in multiple EU countries, you know how painful it can get. EU Inc. gives you one company, one rulebook, and a lot less admin.
Startups: there is a big bonus here around employee stock options (more on that below) that could genuinely change how European startups compete for talent.
Non-EU founders: thinking about expanding into Europe? The barrier just got a lot lower.
The Stock Options Thing (This Is a Big Deal for Startups)
Bear with us here because this one is important.
Right now, if a European startup wants to give its employees a share of the company (what is called equity or stock options), it has to deal with completely different tax rules in every EU country. This has been a huge headache and one of the main reasons European startups have been incorporating in the US (specifically in Delaware) instead of staying in Europe.
EU Inc. introduces something called the EU-ESOP, a shared stock options scheme. As reported by Renew Europe, under EU Inc., stock options will only be taxed when the shares are actually sold, not when they are first granted to the employee. One rule, consistent across the whole EU.
In practice, this means European startups will finally be able to attract talent with competitive equity packages, without relocating to another continent to do it.
But Can I Just Register in Cyprus or Hungary to Pay Less Tax?
This is probably the first question half of you thought of when you read «register anywhere in the EU.» And it is a fair one.
The short answer is: technically yes, but it is not that simple. EU Inc. lets you choose which country to register in, but according to tax experts covering the proposal, EU Inc. is a company structure, not a tax regime. You will still pay taxes based on where your company actually operates and has real substance, meaning real activity, employees, or a physical presence. If you live in Spain and run your business from Spain, Spanish tax authorities can still consider your company tax-resident in Spain, regardless of where it is registered.
That said, there is a lot more to unpack here, especially for service-based businesses, freelancers, and digital nomads who work across borders. Questions like whether you need physical residence, how invoicing works across EU countries, what a bank account in another EU country means for your taxes, and how VAT applies when your clients are spread across Europe. We are working on a full guide covering exactly this, so stay tuned.
Is EU Inc. Available Right Now?
Not yet, and it is important to be clear about this. EU Inc. is still a proposal. It now needs to be approved by the European Parliament and the Council of the EU before it becomes law.
According to Silicon Republic, the Commission is pushing for agreement by the end of 2026, with the full framework in place as part of the broader «One Europe, One Market» reform by 2028.
So it is coming, just not tomorrow. This site will keep you updated every step of the way.
Quick Answers to Questions You Probably Have
Do I have to switch to EU Inc. from my current company?
Absolutely not. It is optional. Your existing company stays exactly as it is.
Will it be available in my country?
Yes, it is designed for all 27 EU member states.
Is there a catch?
It still needs to pass through the European Parliament and the Council, so the final version might look slightly different from what was proposed. We will keep you posted.
Where can I read the full proposal?
Right here: European Commission full proposal (PDF).