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.

Should Your SME Convert to EU Inc? A Practical Guide

The Conversion Question

With the EU Inc framework on the horizon, millions of European SME owners are asking themselves a fundamental question: should I convert my existing company to an EU Inc? The answer, as with most business decisions, is: it depends. This guide examines the factors that should inform your decision.

Who Should Consider Converting?

Conversion to EU Inc makes the most strategic sense for companies that:

Sell across borders — if more than 20% of your revenue comes from other EU countries, the simplified cross-border operations could deliver significant savings
Plan to raise investment — the VC-friendly share structures and standardized governance make EU Inc attractive to international investors
Employ people in multiple EU countries — a single corporate entity can simplify employment, tax, and social security obligations
Want to relocate their registered office — EU Inc allows seamless cross-border seat transfers
Operate in regulated industries — the pan-European regulatory sandbox access could be valuable
Want to signal European identity — the EU Inc designation carries brand value, similar to the SE designation for larger companies

Who Should Probably Stay Put?

Conversion may not be worth the effort for companies that:

Operate primarily in one market — if 90%+ of your business is domestic, the benefits of EU Inc are marginal
Have complex existing structures — companies with multiple subsidiaries, joint ventures, or existing cross-border arrangements may find conversion disruptive
Depend on specific national provisions — certain tax incentives, subsidies, or regulatory advantages tied to national company forms may be lost upon conversion
Are in wind-down mode — companies planning to cease operations within 2-3 years would not recoup conversion costs

The Conversion Process

The EU Inc framework provides for a streamlined conversion process designed to be completed within 30-60 days:

Step 1: Eligibility Assessment (Day 1-5)

Any limited liability company registered in an EU member state is eligible for conversion. The company must be in good standing — no pending insolvency proceedings, no outstanding tax debts, and no unresolved regulatory sanctions.

Step 2: Conversion Plan (Day 5-15)

The company's management prepares a conversion plan that includes:

The proposed EU Inc articles of association (using standardized templates)
A report explaining the legal and economic implications of conversion
The proposed share structure in the EU Inc
Arrangements for employee protection during the transition

Step 3: Shareholder Approval (Day 15-25)

Shareholders must approve the conversion by a qualified majority (typically two-thirds of voting rights). Dissenting shareholders are entitled to a fair buyout at market value.

Step 4: Regulatory Review (Day 25-45)

National authorities review the conversion plan to ensure compliance. This includes tax clearance, labor law compliance verification, and anti-money laundering checks.

Step 5: Registration (Day 45-60)

Upon approval, the company is registered in the EU Inc unified register. The national register entry is updated to reflect the conversion, and the EU Inc registration becomes effective. The company's legal personality and all contractual relationships continue without interruption.

Costs of Conversion

The estimated costs for conversion vary depending on company size and complexity:

Micro-enterprises (1-9 employees): €2,000-5,000 including legal fees, registration charges, and accountancy costs
Small enterprises (10-49 employees): €5,000-15,000
Medium enterprises (50-249 employees): €15,000-50,000

The European Commission is considering a conversion subsidy programme that would reimburse up to 50% of conversion costs for companies with fewer than 50 employees, making the transition more accessible for smaller businesses.

Tax Implications

One of the most important aspects of conversion is the tax treatment. The EU Inc framework establishes that conversion should be tax-neutral — it should not trigger capital gains tax, transfer tax, or any other tax liability. The company's tax history, including accumulated losses and pending deductions, carries over to the EU Inc entity.

However, the company's tax residence may change if it simultaneously relocates its place of effective management. This should be carefully analyzed with a tax advisor before proceeding.

"The tax neutrality principle is crucial. Without it, conversion costs would be prohibitive for most SMEs. The Commission got this right, but the devil will be in the implementation details at the national level," warns Dr. Georg Kofler, professor of International Tax Law at the Vienna University of Economics and Business.

Employee Protections

The conversion process includes strong employee protection provisions:

All existing employment contracts remain in force
Collective bargaining agreements continue to apply
Employee representatives must be consulted during the conversion process
No dismissals can be made on the grounds of the conversion itself
Social security rights and pension entitlements are preserved

Practical Tips for SME Owners

If you're considering conversion, here are practical steps to take now:

Assess your cross-border activity — quantify the current cost of cross-border compliance
Review your shareholder agreement — identify any provisions that might complicate conversion
Consult your tax advisor — understand the specific implications for your jurisdiction
Talk to your bank — confirm that your banking relationships will continue seamlessly
Inform your employees — early communication reduces uncertainty and resistance
Monitor the legislative process — the final EU Inc regulation may differ from the current proposal

Looking Forward

The conversion option is one of the most practically important aspects of the EU Inc framework. By providing existing businesses with a clear, affordable, and tax-neutral pathway to adopt the new European corporate form, the Commission is ensuring that EU Inc is not just for new startups but for the millions of established SMEs that form the backbone of the European economy.