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.

EU Inc vs German GmbH: Which is Better for Your Startup?

The Heavyweight Contender vs The New Challenger

The Gesellschaft mit beschränkter Haftung (GmbH) is Germany's most popular corporate form and arguably the most recognized limited liability company in continental Europe. With over one million active GmbHs in Germany, it has earned a reputation for solidity and credibility. But does that reputation hold up against the EU Inc's modern, digital-first approach?

Registration: Weeks vs Hours

German GmbH

Forming a GmbH in Germany involves a well-defined but time-consuming process, typically taking 3-6 weeks:

Draft the articles of association (Gesellschaftsvertrag) — often with legal counsel
Mandatory notarization of the articles and the shareholder resolution — the most distinctive and costly step
Open a business bank account and deposit the minimum share capital
Registration with the local court (Amtsgericht) commercial register (Handelsregister)
Tax registration with the Finanzamt
Trade registration (Gewerbeanmeldung) with the local municipality

The notarization step alone can take 1-2 weeks to schedule and complete, especially in busy urban areas like Berlin and Munich.

EU Inc

The EU Inc's fully digital process completes in under 48 hours, with no physical appointments required.

Cost Comparison: A €25,000 Gap

The cost differential between a GmbH and an EU Inc is significant:

GmbH Costs

Minimum share capital: €25,000 (of which at least €12,500 must be paid in at registration)
Notary fees: €300-€800 (legally mandated, based on the GNotKG fee schedule)
Commercial register fee: approximately €150
Legal counsel: €500-€2,000 for drafting custom articles
Bank account opening: €50-€100
Total out-of-pocket: €13,000-€15,500 minimum (including capital deposit)

EU Inc Costs

Registration fee: under €100
Minimum share capital: €0
Notary: not required
Total out-of-pocket: under €100

The difference is staggering. A founder choosing EU Inc saves at minimum €12,900 compared to a standard GmbH — capital that can instead be invested in the business.

The UG Alternative: Germany's Answer to Cheap Formation

Germany introduced the Unternehmergesellschaft (UG) — often called the "Mini-GmbH" — in 2008, specifically to compete with the UK's £1 Limited company. The UG requires only €1 in capital but has significant drawbacks:

Must retain 25% of annual profits until reaching €25,000 in reserves
Carries a perception of being "less serious" than a full GmbH
Still requires notarization (same fees as GmbH)
Must include "UG (haftungsbeschränkt)" in its name — a visible signal of limited capitalization

The EU Inc offers the same low-cost entry without any of these stigmas or mandatory profit retention rules.

Capital Requirements: A Philosophical Divide

The €25,000 minimum capital for a GmbH reflects the German legal philosophy of Gläubigerschutz (creditor protection). The idea is that a substantial capital base protects creditors and business partners. However, critics argue that:

€25,000 is no longer meaningful protection in a world of venture-backed companies with millions in liabilities
The capital requirement disproportionately hurts bootstrapped founders and first-time entrepreneurs
Many other successful jurisdictions (UK, US, Estonia) have no meaningful minimum capital requirements

The EU Inc's zero-capital approach aligns with the modern view that business viability is better assessed through financial statements and track records than arbitrary capital floors.

Governance and Administration

GmbH Requirements

At least one Geschäftsführer (managing director) — can be a non-shareholder
Annual financial statements required
Audit required above certain size thresholds
Shareholder meetings must follow strict procedural rules
Changes to articles require notarial authentication
Share transfers require notarial deed

EU Inc Advantages

Simplified governance designed for small and medium enterprises
Flexible share classes including dual-class structures
Digital shareholder meetings and electronic voting
Share transfers via digital platform without notary
Proportionate compliance — fewer requirements for smaller companies

Cross-Border Operations

For German startups with European ambitions, this is the decisive factor:

GmbH: Must establish a branch (Zweigniederlassung) or subsidiary in each EU country. Each requires local registration, legal compliance, and ongoing administration. The process can take months and cost thousands per country.
EU Inc: Operates across all 27 member states from day one. Zero additional registration. Zero additional cost.

"German founders have always been handicapped by the GmbH's domestic focus. The EU Inc finally gives them a vehicle that matches their European ambitions," observed a partner at a leading Berlin venture capital firm.

The German Perspective

Germany's reaction to the EU Inc has been mixed. The Bundesnotarkammer (Federal Chamber of Notaries) has lobbied strongly against the proposal, arguing that notarial oversight is essential for legal certainty. Meanwhile, the German startup community — represented by organizations like the Bundesverband Deutsche Startups — has enthusiastically supported the EU Inc as a long-overdue modernization.

Tax Considerations

GmbH: German corporate tax (Körperschaftsteuer) at 15%, solidarity surcharge of 5.5% on that, plus trade tax (Gewerbesteuer) averaging 14-17%, for a combined rate of approximately 30-33%
EU Inc registered in Germany: Same rates apply
EU Inc registered elsewhere: Subject to the tax rates of the chosen registration country (e.g., Ireland at 12.5%, Bulgaria at 10%, Hungary at 9%)

The Verdict

The GmbH remains a prestigious and well-understood legal form with decades of established case law. For businesses operating exclusively in Germany, particularly in industries where the GmbH carries special weight (manufacturing, engineering, professional services), it may still be the preferred choice.

However, for startups, tech companies, and any business with cross-border ambitions, the EU Inc is objectively superior on every measurable dimension: cost (€100 vs €13,000+), speed (48 hours vs 3-6 weeks), flexibility (zero capital vs €25,000), and reach (27 countries vs 1). The question for German founders is no longer whether the EU Inc is better — it's whether they can afford to ignore it.