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 Societas Europaea (SE): What's Different This Time?

The SE Experiment: A Cautionary Tale

When the Societas Europaea (SE) regulation came into force in 2004, it was heralded as a breakthrough in European company law. For the first time, companies would have access to a pan-European corporate form that could operate seamlessly across the Single Market. More than two decades later, the results have been disappointing. Fewer than 3,500 Societas Europaea companies exist across the entire EU, compared to millions of national limited liability companies.

The EU Inc proposal is the European Commission's attempt to succeed where SE failed. Understanding why SE underperformed is essential to evaluating whether EU Inc can do better.

Why the Societas Europaea Failed to Gain Traction

Excessive Minimum Capital Requirements

The SE requires a minimum share capital of €120,000 — a figure that immediately excluded startups, small businesses, and most new ventures. By contrast, many national company forms (like the German UG or the French SAS) can be formed with as little as €1. The EU Inc proposal sets its minimum capital at €1, explicitly designed to be accessible to all entrepreneurs.

Mandatory Employee Participation

One of the most contentious aspects of the SE was its requirement for employee participation in corporate governance. Before an SE could be registered, a complex negotiation process on employee board representation had to be completed, often taking 6-12 months. This requirement, driven primarily by German and Scandinavian traditions of co-determination, was seen as a major bureaucratic hurdle.

The EU Inc framework makes employee participation optional and scalable. Companies can choose to adopt employee governance provisions, and member states cannot impose additional national requirements on EU Inc entities.

Dependence on National Law

Despite being a "European" company form, the SE is heavily dependent on the national law of its registered office. The regulation contains numerous references to "the law of the Member State in which the SE has its registered office," which means that an SE registered in France operates quite differently from one registered in the Netherlands. This undermined the entire purpose of a unified European form.

"The SE was European in name only. In practice, it was 27 different company forms wearing the same label. EU Inc is designed to be a truly uniform legal entity with a single set of rules regardless of where it's registered," explains Professor Christoph Teichmann of the University of Würzburg, a leading expert in European company law.

Complex Formation Requirements

An SE could only be formed through one of four methods: merger, creation of a holding company, formation of a subsidiary, or conversion from an existing public limited company. It was impossible to form an SE from scratch. This eliminated the vast majority of potential users — entrepreneurs starting new businesses.

EU Inc can be formed directly by any natural or legal person, with no pre-existing company required. The registration process is fully digital and designed to be completed within 48 hours.

Key Differences: EU Inc vs SE at a Glance

The differences between the two frameworks are substantial:

Minimum capital: SE requires €120,000; EU Inc requires €1
Formation: SE requires existing companies; EU Inc allows direct formation
Employee participation: SE mandates complex negotiation; EU Inc makes it optional
National law dependence: SE heavily relies on national law; EU Inc has autonomous rules
Digital registration: SE has no digital provisions; EU Inc is digital-first
Target audience: SE designed for large corporations; EU Inc designed for all sizes
Share flexibility: SE follows national rules; EU Inc allows multiple share classes
Cross-border transfer: SE allows it but with complexity; EU Inc simplifies to administrative procedure

What the SE Got Right

It would be unfair to characterize the SE as a complete failure. It did establish several important principles that the EU Inc builds upon:

The principle of a European corporate form — SE proved that the EU has competence to create supranational company forms
Cross-border seat transfer — SE pioneered the ability for companies to move their registered office between member states
European brand value — companies that did adopt the SE form, such as Allianz SE, BASF SE, and Porsche Automobil Holding SE, used it as a signal of their pan-European identity
Legal precedent — the body of case law around SE provides a foundation that EU Inc can build on

The Political Landscape Has Changed

The SE was adopted during a period when the European Union was still largely focused on the harmonization approach — trying to align national laws rather than creating new supranational frameworks. The political consensus has shifted significantly since then:

The digital transformation of government services has made fully online company formation technically feasible
The Capital Markets Union agenda has created political momentum for removing cross-border investment barriers
Brexit removed the UK — historically one of the strongest opponents of deeper corporate law harmonization
The post-COVID economic recovery agenda emphasized the need to reduce barriers for SMEs
The European Sovereignty agenda has highlighted the competitive disadvantage European companies face against US and Asian counterparts

Will EU Inc Succeed Where SE Failed?

The EU Inc proposal addresses virtually every criticism leveled at the Societas Europaea. Its low capital requirements, direct formation, digital-first approach, and independence from national law represent a fundamentally different philosophy. However, success is not guaranteed. The proposal still faces potential obstacles:

Member state resistance — countries with strong national company law traditions may resist a form that could draw businesses away from national registers
Tax coordination — without harmonized tax treatment, EU Inc could become a vehicle for tax arbitrage
Implementation complexity — building the digital infrastructure for a truly uniform European register is an enormous technical undertaking
Transition period — businesses need certainty, and a new untested legal form carries inherent risks

Looking Forward

The SE's underperformance provides both a warning and an opportunity for EU Inc. By learning from two decades of SE experience, the EU Inc designers have the chance to create a corporate form that actually works for European businesses of all sizes. If they succeed, EU Inc could become the default choice for new company formation in Europe — something the SE never came close to achieving. The stakes, for European competitiveness and economic growth, are enormous.