28. EU Inc. Initiative: The European Commission Has Launched a Revolution in Business Start-ups

Uniform rules across the European Union, online business registration within 48 hours, and startup costs under 100 euros. The European Commission has officially presented a proposal for the EU Inc. Regulation, the so-called 28th Business Regime, which will ensure unimpeded access to foreign markets and competitive conditions for the digital era of business.

What exactly will EU Inc. bring to entrepreneurs?

While until now you’ve had to navigate 27 different legal systems, notaries, and a mountain of translations when expanding abroad, EU Inc. is set to bring a major breakthrough. This new, optional legal framework will exist alongside the Czech s.r.o. or, for example, the German GmbH, but with the difference that it will ensure the same rules and conditions for companies across the entire European Union.

The European Commission has heeded the business sector’s call for digitization and simplification. If the proposal passes through the legislative process as planned, it will bring these specific benefits:

ESOP: How will EU Inc. facilitate talent compensation?

For tech startups and ambitious companies, one of the most important changes is the EU-wide regulation of employee stock option plans (ESOPs).

Until now, employees in most countries had to pay tax on stock options as soon as they received them, even though they had not yet realized any actual income from them.

Under EU Inc., employee stock options and shares will be taxed only at the time of sale, not at the time of acquisition. This is a fundamental difference from many current national regulations. It will allow companies to more easily attract talent from across Europe, offer them real value without an immediate tax burden, and compete with conditions in the U.S.

When will you be able to establish an EU Inc.?

The proposal is currently making its way from the European Commission to the European Parliament and the Council of the EU. The goal is to have the final legislation approved by the end of 2026 so that the first single European companies can be established as early as the turn of 2026 and 2027. For innovative companies, this is a clear signal to start preparing.

EU Inc. will not replace your existing s.r.o., but it will give you a powerful tool for expanding abroad without having to establish a new subsidiary in every country or pay for local lawyers, notaries, and accountants.

We’ll help you grow beyond the Czech Republic

We constantly monitor legislative developments on your behalf and are already helping entrepreneurs with international growth. Whether you’re considering a Delaware C-Corp structure to attract investors or a UK Limited company for easier global trade, we’ll take care of everything you need. Contact us using the form below, and we’ll be happy to discuss the best solution for your specific situation.