The EU Inc. (European Incorporated Company) is a new pan-European company form proposed by the European Commission under Regulation COM(2026) 320. It allows entrepreneurs to incorporate a company valid across all 27 EU member states, entirely online, in 48 hours, for under €100.

When will the EU Inc. be available?

The regulation was proposed on March 18, 2026. It is currently being reviewed by the European Parliament and Council. Final adoption is expected in 2027, with the first EU Inc. companies possible by 2028.

How much does it cost to create an EU Inc.?

The maximum registration fee is capped at €100, with zero minimum capital requirement. This makes it the most affordable company form in Europe and possibly the world.

Is the EU Inc. valid in all EU countries?

Yes. Once registered, an EU Inc. is automatically recognized in all 27 EU member states without any need for re-registration or additional procedures.

Do I need a notary to create an EU Inc.?

No. The entire process is digital. Identity verification is done online, replacing traditional notarization. You can incorporate from anywhere with an internet connection.

What is Regulation COM(2026) 320?

COM(2026) 320 is the official reference number for the European Commission's legislative proposal establishing the EU Inc. company form. It was published on March 18, 2026.

The European Parliament's Role in Shaping EU Inc

From Proposal to Legislation

The EU Inc proposal, formally introduced by the European Commission as a draft regulation, must now navigate the European Parliament's legislative process before it can become law. This process is far from a rubber stamp — the Parliament has the power to significantly amend, reshape, or even reject the Commission's proposal through the ordinary legislative procedure (formerly co-decision).

Understanding how Parliament is approaching the EU Inc debate is essential for anyone with a stake in the outcome, from entrepreneurs and investors to national governments and legal professionals.

The JURI Committee: Where the Action Is

The Committee on Legal Affairs (JURI) has been assigned primary responsibility for the EU Inc proposal. As the Parliament's specialist committee for company law, JURI is where the detailed technical work on the regulation takes place. The committee has appointed MEP Axel Voss (EPP, Germany) as rapporteur — the member responsible for drafting the Parliament's position.

Voss, a veteran of EU digital policy who played a key role in the Copyright Directive and the AI Act, brings significant experience to the role. His initial draft report, published in March 2026, signals a broadly supportive approach with targeted amendments in several areas:

Strengthening the minimum capital requirement — Voss proposes raising the minimum capital from €1 to €100, arguing that some capital threshold is needed to signal seriousness
Enhancing transparency provisions — additional requirements for beneficial ownership disclosure and financial reporting
Clarifying the relationship with national law — more explicit provisions on which matters remain subject to national jurisdiction
Phased implementation — a longer transition period of 36 months rather than the Commission's proposed 24 months

Shadow Rapporteurs and Political Groups

Each political group appoints a shadow rapporteur who represents their group's position in negotiations. The key shadow rapporteurs and their groups' stances:

S&D (Socialists and Democrats)

The S&D group, represented by MEP Lara Wolters (Netherlands), is supportive of EU Inc but wants stronger labor protections. Key demands include mandatory employee information and consultation provisions, minimum standards for employee stock option schemes, and safeguards against using EU Inc as a vehicle to circumvent collective bargaining agreements.

Renew Europe

MEP Stéphanie Yon-Courtin (France) leads for Renew Europe, which is the most enthusiastic supporter of the proposal. The group is pushing for lower barriers to entry, faster implementation timelines, and stronger provisions for digital-first operations. They have proposed amendments to enable fully automated company formation through smart contracts.

Greens/EFA

The Greens, represented by MEP Kim van Sparrentak (Netherlands), have concerns about potential tax avoidance and want to ensure the framework includes mandatory sustainability reporting, environmental due diligence requirements, and provisions preventing the use of EU Inc for aggressive tax planning.

ECR (European Conservatives and Reformists)

The ECR group is cautiously supportive but wants to ensure national sovereignty is preserved. They are pushing for amendments that would give member states more flexibility in applying certain provisions and resist what they see as excessive harmonization.

Key Debates and Flashpoints

Several issues are expected to generate intense debate as the file progresses through Parliament:

Tax Coordination

The most politically sensitive issue. The Commission's proposal deliberately avoids tax harmonization, leaving EU Inc companies subject to the tax laws of their place of effective management. However, many MEPs are concerned that this could lead to a "race to the bottom" as companies register their effective management in low-tax jurisdictions.

Employee Participation

The balance between labor rights and business flexibility remains contentious. While the Commission's proposal makes employee board representation optional, the S&D group and some EPP members from Germany and Austria want to introduce minimum employee participation thresholds for larger EU Inc companies.

Digital-Only or Hybrid?

Some MEPs argue that the digital-first approach excludes entrepreneurs who are not digitally literate, particularly in regions with lower digital infrastructure. Amendments have been proposed to require member states to provide physical access points for EU Inc registration and management.

"The European Parliament is where the rubber meets the road for EU Inc. The Commission's proposal is a starting point, but the final legislation will look quite different after Parliament has had its say. That's democracy at work," observes Professor Alberto Alemanno of HEC Paris, a specialist in EU law and policy.

Timeline and Next Steps

The anticipated legislative timeline:

Q2 2026 — JURI committee consideration of amendments and rapporteur's draft report
Q3 2026 — Committee vote on final report
Q4 2026 — Plenary debate and first reading vote
Q1 2027 — Trilogue negotiations between Parliament, Council, and Commission
Q2-Q3 2027 — Expected agreement and formal adoption
2028-2029 — Implementation period

The Council Dimension

While this article focuses on Parliament, the Council of the European Union (representing member state governments) is equally important in the legislative process. The Council's general approach, expected in late 2026, will determine the scope of trilogue negotiations. Member states with strong national company law traditions (notably Germany, France, and the Netherlands) are expected to push for amendments that protect their existing corporate frameworks.

Looking Forward

The European Parliament's handling of the EU Inc proposal will determine whether the framework achieves its ambitious goals or gets watered down by political compromises. The early signs are encouraging — there is broad cross-party support for the principle of a European corporate form, even if disagreements remain on the details. For European businesses waiting for EU Inc, the parliamentary process is the crucial next step on the road to a truly unified European business environment.