Smarter spending for your business – EU Inc framework update

A shift in how companies are built in Europe

Scaling across Europe shouldn't mean navigating different rules in every country. That's why the European Commission is working on a new legal framework – often called EU Inc. or the 28th Regime – designed to simplify how companies operate across the EU.

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Looking forward

Pleo serves more than 45,000 customers across Europe. We work closely with thousands of leaders who experience this fragmentation daily. We will share our insights and learnings with the European Commission to help shape the strongest possible framework.

Europe has long been one market in theory, and fragmented in practice. The proposed EU Inc framework aims to close that gap by introducing a single legal structure which allows companies to operate across EU member states. Whether it delivers on that ambition remains to be seen.

We’re tracking the initiative as it moves from announcement to detail, including how the framework is expected to work, likely timelines, and what it could realistically change for founders and operators.

EU-Inc refers to a proposed EU-wide company legal form based on the so-called 28th corporate regime. It is not yet law but a policy initiative from the European Commission to create a standardized legal entity that can operate across all EU member states under one unified legal structure.

Europe’s current single market is fragmented in practice. Companies face 27 different company laws, registration systems, capital regimes, and administrative processes when expanding across the EU. EU-Inc aims to fix that by making incorporation, governance and cross-border operations far simpler.

Under the proposal:

A company could be registered once and recognised across all EU member states.
Incorporation could be fully digital and potentially completed within 48 hours.
Investment documentation and stock option frameworks could be standardized across the bloc, easing funding and equity compensation.

The intention is to sit alongside, not replace, national legal frameworks. Founders could choose to operate under national law or the EU-Inc regime.

No. The initiative is currently a policy proposal and has not become law. It still needs:

A formal legislative proposal from the European Commission.
Approval through negotiations in the European Parliament and the Council of EU member states.

Realistic timelines suggest implementation no earlier than 2027.

The idea has backing from:

Founders, investors, legal experts and ecosystem stakeholders through the EU-Inc campaign.
Members of the European Parliament working to shape the 28th regime.
The European Commission and President von der Leyen as a strategic competitiveness priority.

Legislation must be agreed by:

The European Commission (drafts the proposal).
The European Parliament (review and amendments).
The European Council (the 27 EU governments, for final negotiation and adoption).

No. It will operate alongside national systems as an optional regime. It does not abolish national company law and does not create a single EU tax code, labour code, or insolvency regime. Those areas remain largely national.

EU-Inc promises concrete benefits:

Faster, simpler incorporation across the EU.
Reduced administrative friction when expanding in Europe.
Harmonized investment documentation and stock option treatment, reducing legal complexity for cross-border fundraising and recruitment.

Founders should be aware that:

Tax treatment is still national and won’t be unified by EU-Inc.
Employment and labour laws stay national and must be complied with locally.
There is no defined migration path yet for existing companies to switch to an EU-Inc entity.
Effective implementation requires administrative coordination across 27 member states.

It’s important to stay informed and engage with the evolution of the regime, but for strategic planning today:

Do not assume EU-Inc will replace existing legal structures soon. Implementation will take time.
Continue to design corporate structure, fundraising, and expansion plans based on current national frameworks.

EU Inc. in the press