The Vision: One Europe, One Company Form
After decades of fragmentation, Europe stands at a crossroads. The European Commission has opened public consultations on the 28th Regime — a revolutionary proposal to create a single, optional EU-wide legal entity for startups and innovative companies. Think Delaware C-Corp, but for Europe.
The promise is compelling: replace 27 splintered national systems (Germany's GmbH, France's SARL, Netherlands' BV, Spain's S.L., Italy's SpA, etc.) with one digital-first vehicle that enables companies to build, hire, and raise capital across Europe without navigating a maze of national red tape.
What EU Inc. Would Deliver:
100% digital incorporation — no notaries, no apostilles, setup in hours not weeks
Unified legal entity under EU law for seamless cross-border operations
Central EU registry with one-stop, fully digital onboarding in English
Standardized investment documentation and harmonized legal templates
Europe-wide stock option framework enabling consistent equity packages across borders
The Momentum Behind Change
The grassroots EU Inc. initiative, launched in October 2024 by a coalition of top entrepreneurs, startup founders, and venture capitalists, has already gathered 16,000 signatures from founders, investors, and enthusiasts. High-profile supporters include voices from the Draghi and Letta reports, recognizing that Europe's innovation potential is being stifled by regulatory fragmentation.
Commissioner Ekaterina Zaharieva has committed to proposing a framework for the 28th Regime in 2025, with the Commission planning to introduce the 28th legal regime in 2026. As she stated, "We must create the best possible framework conditions for innovators, and give them the opportunities they need to choose Europe for developing their products and solutions."
The Current Reality: 27 Flavors of the Same Headache
Today's European startup landscape is a bureaucratic nightmare. Entrepreneurs face:
Multiple legal entities required for cross-border operations, each with distinct rules, paperwork, and tax frameworks
Fragmented stock option rules make it nearly impossible to offer consistent equity packages across borders
Complex hiring processes requiring navigation of entirely new legal and payroll systems for each country
Costly and time-consuming setup processes that put European founders at a severe disadvantage compared to their US counterparts
As Iwona Anna Biernat, Legal Strategy Lead at EU-Inc, puts it: "What we need is one company form, one registry, one market. Not 27 flavours of the same headache."
The Opposition: Old Guard vs. Innovation
However, the path forward faces significant resistance. A concerning pattern has emerged in the consultation process: legacy institutions are dominating the input. Banks, notarial chambers, and legal professional associations — many of which benefit from the status quo — are heavily represented in stakeholder consultations.
While innovative voices like Stripe, France Digitale, EU Inc., Startup Portugal, and the European Startup Nations Alliance are participating, they're being outnumbered by traditional institutions and public bodies that have vested interests in maintaining the current fragmented system.
Even more concerning, the European Trade Union Confederation (ETUC) has mounted strong opposition, warning against undermining worker protections and collective bargaining rights. They fear a repeat of the controversial Bolkenstein Directive, which would have allowed companies to apply "country of origin" principles, potentially enabling social dumping and forum shopping.
The Stakes: Europe's Innovation Future
This isn't just about administrative convenience — it's about Europe's ability to compete globally. The current system forces startups to piece together a patchwork of local solutions, slowing growth and discouraging international ambition. Meanwhile, US companies benefit from unified Delaware incorporation that scales seamlessly across all 50 states.
The European Innovation Act, running parallel to the 28th Regime consultation, acknowledges that Europe produces high-quality research and innovation, but only a fraction transforms into successful market products. Key barriers include:
Insufficient exploitation of intellectual property rights
Gaps in standardization
Barriers preventing universities from adopting commercialization-focused approaches
Fragmented access to finance, talent, and infrastructure
Innovation-unfriendly procurement processes
The Critical Window: September 30, 2025
The European Commission's public consultation is open until September 30, 2025 — a make-or-break moment for European entrepreneurship. The startup community has a narrow window to ensure their voices are heard above the chorus of traditional institutions seeking to preserve the status quo.
How the startup community can act:
Submit written evidence — Share specific examples of how current fragmentation has hindered growth, caused missed opportunities, or created unnecessary complexity
Complete the questionnaire — Demonstrate that the startup community is engaged and unified on this issue
Engage political networks — Reach out to national leaders, Justice ministers, and Economy ministers about the critical importance of EU Inc
Amplify through media — Politicians take cues from media coverage, making public discourse crucial for shaping policy priorities
The Verdict: A Defining Moment
Europe faces a choice: embrace a unified, digital-first approach that could unleash its innovation potential, or remain trapped in a system designed for a pre-digital, pre-globalized economy.
The 28th Regime represents more than regulatory reform — it's about whether Europe will Choose Innovation over Inertia. With the Commission set to propose legislation in 2026, the next few months will determine whether European entrepreneurs get the tools they need to compete globally or whether they'll continue navigating 27 different bureaucratic mazes.
The startup community's voice in this consultation isn't just important — it's existential. Europe needs one company form, one registry, one market. The question is whether Brussels will listen.
The public consultation is open until September 30, 2025, on the European Commission's "Have your Say" portal. The future of European entrepreneurship may well depend on who shows up to shape it.
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The Battle for Europe's Startup Future: EU Inc. and the 28th 🇪🇺 Regime 🇪🇺
A critical moment for European entrepreneurship is unfolding in Brussels, with far-reaching implications for the continent's innovation ecosystem
