What EU-INC is? What aims to bring in fruition in 2027?
“..too many companies have to look abroad to grow and scale up – partly because they face a new set of rules every time they expand into a new Member State. So while on paper the market of 450 million Europeans is open to them, it is far more complicated in reality.” said the President of the European Comission Ursula Gertrud von der Leyen, 20/01/2026, while at Davos, World Economic Forum 2026.
The new EU-INC (pan-European legal entity/28th regime) aims to introduce a new era in the corporate model. EU or non-EU citizens will have the opportunity, with the Unified European Company to create an entity online and within 48 hours and at lower cost.
The EU-Inc will not be much different from the entities we already work with. It will be registered as a private, share-based limited liability company, ensuring the shareholders’ personal assets. The capital of an EU-Inc shall be divided into shares with a specified nominal value. The registered office of an EU-Inc shall be located within the Community, in the same Member State as its head office. Moreover, the administrative seat of an EU-Inc may be transferred to another Member State without requiring in the winding up of the EU-Inc or the creation of a new legal person (Appendix III: EU-Inc Core Corporate Framework).
The new legal entity aims to address problems of the European financing ecosystem (especially the low cross-border investment), the struggle of the member states to attract skilled workers, significant variation in legal frameworks across the EU member states, the fragmented corporate laws, the EU slow scaling (compared to major global players), regulatory arbitrage and, of course, the administrative burden a company has to go through when operating in multiple countries.
The new pan-European legal entity, not only embodies the freedom to conduct business activities in any member state, but also the freedom to move the entity into a different state without the need to re-incorporate. A single EU legal form, easier cross-border scaling, more investor friendly, reduced legal & administrative costs, stronger EU competitiveness are just some of the benefits of this ambitious legal entity, “..this will not only help EU companies grow. But it will attract investment from across the world.”(Ursula Gertrud von der Leyen).
In other words, the EU-Inc seeks to bring the EU-Corporate interface into a new era. The EU is ready to challenge the world leading countries (USA and China), granting pan-European entities access in a market of 27 member states and 450 million Europeans.
Nevertheless, it will be a transformative step towards a more unified single market.
Discussions denote that taxation of the new company format seems to stay national while some concerns over the corporate governance and applicable labor laws still remain to be clarified.
Loucas Kyriacou
For Eliades & Kyriacou LLC
This article is provided for informational purposes only and does not, under any circumstances, constitute legal advice. For further information on this matter or to receive legal advice, please contact Eliades & Kyriacou LLC (tel. +357 22 755100, email: info@eklaw.com.cy)