EU Inc.: Is the era of 27 different sets of rules for doing business in Europe coming to an end?

When Czech startups want to expand into foreign markets, they often face a dilemma: should they establish subsidiaries in each EU country, or move directly to the US (Delaware) for simpler legislation? The introduction of a single pan-European legal form, EU Inc., would remove at least 27 national barriers.

EU Inc. as a new 28th business regime

While people, goods, and money move freely within the European Union, companies still encounter barriers at the borders. Each country has its own corporate law, which determines the rules for doing business from its establishment and operation to its termination. Different laws, taxes, and forms unnecessarily hinder the growth of companies and discourage foreign investors who do not want to take risks in an unfamiliar legal environment.

The EU Inc. initiative offers a solution: to create a so-called 28th regime. A single legal template that would exist in parallel to the 27 national forms of business such as s.r.o. or a.s., but would be recognized identically in all EU member states.

In practice, you can imagine all 28 regimes as a single European legal passport for companies:

  • 1

    27 national variants: You can choose between a Czech s.r.o., German GmbH, Slovak s.r.o., French SAS, etc. (exactly as many as there are EU member states). Each has its own specific rules, notaries, and language.

  • 2

    28th variant (EU Inc.): A single transnational form of business without borders or complications. You can set it up according to the same rules in Prague, Brussels, or Madrid.

What are the main benefits of EU Inc. in practice?

The new legal form of EU Inc. is already being actively discussed in Brussels. If this initiative is officially approved, it will bring about a significant simplification in several key areas:

Area Current situation With the EU Inc. vision
Establishment and expansion You have to establish a new branch in each country (high costs). One company valid for the entire EU without the need for local subsidiaries.
Investment Investors review the company (due diligence) according to 27 different laws. A uniform structure that investors in Silicon Valley and Paris understand.
Employee shares/stock options ESOPs are tax and legally complicated in many countries (including the Czech Republic). Uniform rules for pan-European talent incentive programs.
Administration Physical visits to notaries, translations, legalization of documents. Fully digital process of establishment and automatic recognition of documents.

Why consider a pan-European company?

Today, successful Czech companies most often choose the American Delaware C-Corp or British Limited structure for international growth. The reason is not only prestige, but above all ease of understanding for global venture capital (VC).

EU Inc. aims to become the European answer to these models. The goal is to create a universal standard that will allow companies to remain in Europe while having the same flexibility and clarity for investors as their competitors in the US.

When can EU Inc. become a reality?

The EU Inc. initiative is not just a bold entrepreneurial vision, but is beginning to take on real dimensions. The current schedule is as follows:

  • Q1 2026: The European Commission is expected to present an official legislative proposal in the coming weeks with precise rules on the new legal form and its functioning.
  • 2027-2028 launch: If the legislative proposal passes the approval process (the so-called trilogue between the European Commission, the European Parliament, and the member states), the first unified pan-European companies could be established as early as 2027. More cautious estimates predict full implementation by 2028 at the latest.

What does this mean in practice? Although the approval process at the European level takes time, it is crucial for innovative companies to prepare now. Decisions about the future structure of the holding company or the setup of international teams should take into account that business opportunities may change fundamentally in the next 24 months.

We will help you expand beyond the borders of the Czech Republic

Are you considering expanding abroad or optimizing your corporate structure? We can set up an offshore company for you in the US or the UK. Contact us using the form below and we will look for the most suitable solution for your specific situation.

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