Brussels Proposes 48-Hour Digital Company Registration to Unlock EU Growth
Published on 07/25/2026 at 16:22 | Redaktion boerse-global.de
The European Commission has unveiled plans for a new pan-European legal structure called “EU Inc.” that would allow entrepreneurs to register a business entirely online in under two days for less than €100. The proposal, presented in mid-March 2026, aims to eliminate the legal fragmentation that currently forces startups to navigate 27 different national company law regimes.
Under the so-called 28th regime, founders would face no minimum capital requirement and could choose any EU member state as their country of incorporation, regardless of where they actually operate. The Commission estimates the reform could boost the Union’s gross domestic product by 3.3 percent within a decade, rising to 4.4 percent over 20 years — though analysts warn the effect might drop to just 1.5 percent if insolvency law is not harmonised alongside company law.
A central feature of the package is a standardised employee stock ownership plan (EU-ESOP), designed to make cross-border equity incentives simpler for growing firms. The model includes a protective clause to safeguard workers’ interests. Crucially, while corporate law would be unified, national labour and tax codes would remain untouched — a deliberate concession to member states that guard those areas jealously.
Germany Moves on Labour Law Reforms
Because the EU Inc. leaves domestic employment rules intact, individual countries still need their own adjustments to make the new structure attractive. In July 2026, the German government presented a package titled “Aufschwung und Beschäftigung” (Upswing and Employment) with several key changes that will apply to EU Inc. companies hiring staff in Germany:
- Fixed-term contracts without a specific reason can now run for up to 48 months
- The written-form requirement in labour law will be abolished from 1 January 2027
- Dismissal protection will be loosened for specialists and executives earning more than €177,450 per year, allowing simplified termination with a severance payment
Political Timeline and Opposition
Negotiations are currently underway in the European Parliament and the Council, with the Commission targeting adoption by the end of 2026. The Netherlands signalled its support in mid-July, and the so-called E6 countries — Germany, France, Spain, Italy, Poland and the Netherlands — are pushing for deeper harmonisation.
Critics warn the plan could trigger a race to the bottom on corporate taxation between member states. A draft text also includes a two-year waiting period before existing companies can convert to EU Inc. status, intended to protect stakeholders from abrupt restructuring. Separately, the Commission published reports on banking reform in late July, aiming to remove financial-sector barriers and help meet an estimated annual investment need of €1.2 trillion across the Union.
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