The European Commission is preparing a new corporate legal form that will allow the incorporation of a company valid across all 27 Member States in a single procedure. It is called EU Inc, although the European Parliament prefers the name Societas Europaea Unificata (S.EU). The legislative draft is expected by March 2026, with deployment planned for 2027.
What EU Inc is and why it is happening now
Europe has 27 different company law frameworks. A business incorporated in Spain that wants to operate in Germany must set up a subsidiary, adapt its documentation, comply with local regulations and, in many cases, repeat notarial procedures. If it later wants to expand to France, it starts all over again.
Mario Draghi warned in 2024 that this fragmentation jeopardises European competitiveness against the United States and China. Ursula von der Leyen presented the initiative at the World Economic Forum in Davos as a direct response.
EU Inc works as a "28th regime": a European legal form that coexists with national ones. It does not replace the Spanish Sociedad Limitada, the German GmbH or the French SAS. It is added as a voluntary option.
How it will work in practice
According to the European Commission's announcements, the main features are:
- Fully online registration in any Member State
- Maximum 48-hour incorporation period
- A single EU-wide portal
- Automatic right to operate in all Member States without additional subsidiaries
- Standardised regulatory framework: one set of rules for taxation, stock options and compliance
Expanding into new markets would not require duplicating documentation or rebuilding legal infrastructure in each country. A company based in Barcelona could operate in Amsterdam, Berlin and Lisbon as a single entity.
Differences from previous attempts
This is not the first time Europe has tried to unify company law. There are precedents:
- The Societas Europaea (SE) of 2004, designed for large corporations. It is barely used due to its administrative burdens.
- The European Private Company of 2010, which was never approved.
- The Single Member Company of 2014, which also failed.
All hit the same obstacle: they required unanimity from all 27 Member States. EU Inc changes the mechanism. The Council will vote by qualified majority (15 out of 27 countries), making approval viable even with some opposition.
The European Parliament has already adopted a report with 492 votes in favour and 144 against — a broad cross-party majority.
Who supports the initiative
The original 2024 petition grew from 15,000 signatures to over 23,000. Signatories include Arthur Mensch (Mistral), Anton Osika (Lovable), Patrick Collison (Stripe) and companies such as Wise, Klarna and Cabify.
It also has backing from business organisations in France, the Netherlands, Denmark, Hungary, Germany and Austria.
What changes for Spain
If EU Inc is approved with the announced features, it will have direct effects on the Spanish business ecosystem:
For Spanish entrepreneurs. Anyone wanting to operate in several European countries will be able to choose between incorporating a Spanish SL (and then creating subsidiaries in each country) or directly incorporating an EU Inc covering the entire single market. The SL will continue to exist for those operating only in Spain.
For investors. EU Inc facilitates cross-border investment by offering a homogeneous legal entity. A French investor examining a Spanish startup incorporated as an EU Inc will find the same rules as for a company in their own country.
For foreign companies operating in Spain. A company incorporated as an EU Inc in any other Member State will be able to operate in Spain without a subsidiary or additional procedures. This may simplify operations but also increase competition for local businesses.
Limitations and outstanding questions
The legislative text has not yet been published. Several issues will determine the real impact:
- Minimum capital: it has not been specified whether it will be lower or higher than for the Spanish SL (currently 1 euro since the 2022 reform)
- Tax residence: where an EU Inc with operations in several countries will be taxed
- Relationship with national labour law: each country retains its own labour regulations, creating grey areas in hiring
- Oversight: there is legitimate concern about the loss of national regulatory control
The European Parliament has called for it to be processed as a directive (each country transposes it into its legislation) rather than a regulation (direct application). This could add months or years to the process.
Expected timeline
- March 2026: presentation of the legislative draft by the European Commission
- 2026–2027: negotiation in Parliament and the Council
- 2027 (optimistic estimate): deployment of the registration system
In the meantime: how to incorporate a company today
EU Inc does not exist yet. Anyone who needs to incorporate a company today has the current options. In Spain, the fastest route is the Sociedad Limitada through the CIRCE system, which allows incorporation in 7 hours online with a minimum capital of 1 euro.
If your business needs to operate in several European countries from day one, today that requires incorporating the SL in Spain and then creating subsidiaries or branches in each target country, each with its own notarial and registration requirements.
When EU Inc comes into force, it will need to be assessed case by case whether the national or European form is more suitable. It will depend on capital, target markets, tax structure and the type of operations.