Council Sets Position on EU Inc. Company Regime
The Council of the EU finalised its negotiating position on an optional EU-wide company law framework, which will now move into talks with the European Parliament.
Updated on Nov. 3, 2026 in Business Strategy
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The Council of the EU finalised its negotiating position on EU Inc., a proposed optional EU-wide company law framework also called the 28th regime. The position will form the basis of discussions between the Council and the European Parliament.
Why it matters
EU Inc. aims to reduce the complexity of operating across 27 national legal systems and more than 60 company legal forms. It was one of the recommendations in Mario Draghi's report on European competitiveness.
EU Inc. offers registration within 48 hours for a maximum of €100 and no minimum share capital, while solvent companies can be wound up in about three months. The proposal is expected to apply from 2028, 12 months after entry into force, and the final terms remain subject to negotiation.
The players
Council of the European Union
The Council of the European Union is the body representing EU member state governments that set the negotiating position on EU Inc.
European Parliament
The European Parliament is the directly elected legislative body of the EU that will now negotiate the EU Inc. proposal with the Council.
Mario Draghi
Mario Draghi is a former Italian prime minister and European Central Bank president whose report on European competitiveness recommended EU Inc.
The details
Under the framework, companies submit information once through an EU central interface that transmits data to national business registers. The regime allows fully digital share transfers, capital increases and online general meetings, and includes an optional employee stock option plan taxed only when sold. Existing national employment and social laws would fully apply to EU Inc. companies.
Timeline
23 October 2026: Council of the EU finalised its negotiating position on EU Inc.
2028: EU Inc. expected to apply, 12 months after entry into force.
Business Strategy Context
EU Inc. follows from Mario Draghi's report on European competitiveness, which called for simplifying the bloc's fragmented corporate rules. The proposal would add an optional 28th company regime alongside the 27 national systems rather than replacing them.
Companies operating across EU member states could eventually register under one optional framework with lower setup costs and fully digital administration. Existing national employment and social laws would still apply to companies that choose the regime.
The takeaway
Businesses planning cross-border EU operations may want to track the EU Inc. negotiations, since the optional regime could reduce the administrative burden of operating in multiple member states. Its final terms may still change before publication.
What happens next
The Council's position will now be discussed with the European Parliament, and the proposal is expected to apply from 2028, 12 months after entry into force.
Further reading
For more on how companies plan around regulatory change, see Business Strategy.
Source note: This article includes information reported by Pinsent Masons.
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