Towards a 28th regime: a new European framework for EU companies

As already discussed in recent ABBL committee meetings, the European Commission issued, on 18 March 2026, a proposal for a Regulation establishing a 28th regime corporate legal framework.

The draft proposal aims to introduce an optional, digital-by-default European company framework, designed to reduce regulatory fragmentation across Member States and facilitate the creation and operation of EU startups and scaleups. The broader objective is to incentivise growth and innovation within the Single Market.

Key features of the proposed framework

A new European company form: EU Inc.

The proposal establishes a new optional, standardised form of limited liability company, referred to as the EU Inc.

This legal form would be recognised across all Member States, with the requirement that its registered office be located within the European Union.

Fast-track incorporation

The Regulation provides for a fast-track formation process, allowing registration within 48 hours.

Additional features include:

• Creation fees capped at EUR 100
• No minimum capital requirement
• The possibility to use standardised or tailor-made articles of association

A fully digital and simplified framework

A central objective of the proposal is to reduce administrative burden.

This would be achieved through:

• A fully digital incorporation regime
• Simplified procedures and reduced operational costs
• A one-stop-shop mechanism to centralise the sharing of information

The “once-only submission” principle

The Regulation introduces a “once-only submission” principle for company information.

Under this approach:

• Information and documents are submitted once at the time of registration
• Data is filed via the business register or an EU interface
• The EU Inc. must keep its information up to date, allowing reuse throughout its lifecycle
• Relevant information will be made publicly available via business registers

Simplified liquidation procedures

The proposal also introduces fast-track liquidation and simplified winding-up procedures.

These mechanisms apply to both:

• Solvent EU Inc. companies, and
• Insolvent EU Inc. innovative startups

They complement the standard liquidation regimes applicable under domestic laws and are subject to specific conditions.

Preventive controls

Member States will be required to implement preventive administrative, judicial and notarial controls on the EU Inc.’s articles of association.

These controls must be carried out within strict timelines, ranging from 48 hours to five working days, to ensure that the information provided is accurate and reliable for third parties.

However, it remains to be clarified whether financial institutions will be able to rely on this information for AML/KYC purposes.