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.

Regulatory Sandboxes: How EU Inc Supports Innovation

Innovation Needs Room to Experiment

One of the persistent criticisms of the European business environment is that regulation stifles innovation. While the EU's comprehensive regulatory framework provides important consumer and environmental protections, it can also create barriers for companies developing novel products and services that don't fit neatly into existing regulatory categories.

The EU Inc proposal addresses this challenge through the introduction of pan-European regulatory sandboxes — supervised environments where companies can test innovative offerings with real customers while operating under relaxed or adapted regulatory requirements.

What Is a Regulatory Sandbox?

A regulatory sandbox is a framework that allows businesses to test innovative products, services, or business models under regulatory supervision without being immediately subject to all the usual rules that apply to a fully authorized entity. The concept originated in the UK's Financial Conduct Authority in 2016 and has since been adopted by financial regulators worldwide.

The key elements of a sandbox include:

Defined scope — specific products or services being tested
Time-limited authorization — typically 6-24 months
Customer safeguards — informed consent, compensation mechanisms, and data protection
Regulatory engagement — ongoing dialogue between the company and the regulator
Graduated exit — a clear path from sandbox to full authorization or graceful wind-down

The EU Inc Sandbox Advantage

Currently, regulatory sandboxes in the EU operate at the national level, creating fragmentation. A fintech company approved for a sandbox in the Netherlands cannot automatically extend its testing to France or Germany. The EU Inc framework changes this in two important ways:

Pan-European Passport

An EU Inc company accepted into a regulatory sandbox in any participating member state would receive a pan-European sandbox passport, allowing it to extend its testing across borders without additional national applications. This is particularly important for companies whose innovations are inherently cross-border, such as cross-border payment solutions, pan-European insurance products, or continental logistics platforms.

Multi-Sector Coverage

Unlike existing sandboxes, which are typically limited to financial services, the EU Inc sandbox framework would cover multiple sectors:

Fintech — payment innovations, decentralized finance, insurance technology
Healthtech — digital therapeutics, AI diagnostics, telemedicine platforms
Mobility — autonomous vehicles, urban air mobility, mobility-as-a-service
Energy — peer-to-peer energy trading, virtual power plants, grid optimization
AI and data — high-risk AI applications under the AI Act, data marketplace innovations

Connection to the European Innovation Act

The sandbox provisions in the EU Inc framework are designed to complement the proposed European Innovation Act, which establishes a horizontal framework for innovation-friendly regulation across the EU. The Innovation Act introduces the principle that regulators should "enable before they restrict" — a significant shift from the traditional precautionary approach.

"The combination of EU Inc and the Innovation Act creates a powerful ecosystem for European startups. You can form your company in hours, access a pan-European market from day one, and test your most innovative ideas in a supervised sandbox that spans the entire continent," says Ana Fernandez-Laviada, Director of the European Startup Network.

How the Sandbox Process Works

The proposed EU Inc sandbox process follows a structured pathway:

1. Application

An EU Inc company submits a sandbox application through the unified digital portal, describing the innovation to be tested, the regulatory provisions it seeks relief from, and the safeguards it will implement.

2. Assessment

A European Sandbox Authority, working in coordination with relevant national regulators, evaluates the application based on novelty, potential benefit, risk profile, and consumer protection measures.

3. Authorization

Approved companies receive a time-limited sandbox authorization specifying the scope of testing, reporting requirements, and exit conditions.

4. Testing

Companies operate in the sandbox, providing regular reports and engaging in dialogue with regulators. Real customers can participate, subject to informed consent and appropriate protections.

5. Graduation

At the end of the sandbox period, companies either receive full authorization, extend their sandbox period, or undertake a supervised wind-down.

Real-World Applications

Consider how the EU Inc sandbox could work in practice:

A Berlin-based AI healthcare startup could test its diagnostic algorithm with patients across five EU countries simultaneously, under coordinated regulatory supervision
A Lisbon fintech company could pilot a new cross-border payment system in 12 EU markets without obtaining separate authorizations in each
A Stockholm energy startup could trial peer-to-peer solar energy trading across the Nordic and Baltic regions under a single sandbox authorization

Safeguards and Criticism

The sandbox proposal is not without critics. Consumer protection groups worry that sandbox participants could expose customers to untested products. Privacy advocates note that data protection standards must be maintained even in experimental settings. And some regulators are concerned about maintaining oversight quality across 27 member states.

The proposal addresses these concerns through:

Mandatory consumer consent — participants must be fully informed about the experimental nature of the service
Compensation fund — sandbox participants contribute to an EU-wide compensation fund for affected consumers
Data protection baseline — GDPR obligations remain fully applicable within sandboxes
Regulatory kill switch — supervisors can terminate sandbox participation at any time if risks materialize

Looking Forward

Pan-European regulatory sandboxes represent one of the most innovative aspects of the EU Inc proposal. By giving companies the space to innovate while maintaining appropriate safeguards, they could help Europe overcome its reputation as a market where regulation inhibits rather than enables innovation. For startups and scale-ups, the ability to test pan-European from day one could be the difference between building in Europe or relocating elsewhere.