EU Inc.: a single company form for the entire European market
In March 2026, the European Commission presented a proposal for a new European legal form, namely the EU Inc. This company form is intended to make it easier for businesses to operate across borders within the European Union.
The proposal stems from the fact that companies currently face a fragmented legal landscape. Entrepreneurs wishing to do business in multiple European Member States are confronted with 27 different national legal systems and 60 different company forms. For many businesses, this leads to additional costs and administrative burdens and can act as a brake on growth and investment within the European business environment.
One legal form, one framework
EU Inc. must provide a uniform legal form based on European law, which can be used in the same way across all Member States. The basic principle here is that a company can be established once, easily, affordably and digitally, under a harmonised European company law regime, and can then operate throughout the Union without having to set up a new national legal form each time. However, national obligations in the areas of taxation, labour law, licensing and sector-specific regulations will continue to apply in the Member States where the company operates.
The proposed company form is in line with European ambitions, such as the further development of the Capital Markets Union and strengthening the competitiveness of European companies, particularly start-ups and scale-ups. Furthermore, this proposal should encourage companies to continue trading actively in EU Member States or to bring their operations back within the Union.
Relationship to Dutch legal forms
The introduction of EU Inc. leaves existing company forms, such as the BV and the NV, unchanged. It follows from the European Commission’s explanatory memorandum that EU Inc. is being established as an optional European legal form. This means that entrepreneurs are not obliged to opt for EU Inc., but may use it as an alternative to national legal forms. The existing Dutch legal forms therefore remain in force and retain their independent significance under national law.
Practical benefits
According to the European Commission, the intended benefits are:
- Digital and simplified procedures: incorporation and administration must be conducted entirely digitally;
- Faster and simplified incorporation: companies can be set up more easily at a low cost;
- Full market access: EU Inc. companies can operate in any Member State of their choice;
- Suitable for growth: it will become easier for start-ups and scale-ups to expand internationally;
- Better access to capital: digital procedures will be introduced to finance activities, and it will become easier to transfer shares. A notarial deed will no longer be required for the issue and transfer of shares, and this can be done entirely online. However, a (legality) check applies to incorporation and amendments to the articles of association, which may be carried out administratively, judicially and/or notarially.
Timeline
The European Commission is calling on the European Parliament and the Council to reach agreement on the proposal by the end of 2026 at the latest, after which there should be greater clarity regarding the final form and practical implications of EU Inc.
Advice
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