EU Inc. – new European company for doing business in the EU 

The European Commission is working on a new legal form for conducting business – EU Inc. (European Incorporated Company). The project aims to create a limited liability company operating under similar rules across all European Union member states.

The goal of the initiative is to simplify cross-border business and reduce administrative barriers for entrepreneurs expanding their operations within the European market.

EU Inc. as an alternative to national companies in the EU

The new legal form is intended to function in parallel with national commercial company regulations. This means that entrepreneurs will still be able to conduct business in the form of a Polish limited liability company (sp. z o.o.) or a simple joint-stock company (PSA). Instead, EU Inc. is meant to serve as an alternative for entities expanding internationally.

Despite the EU-wide nature of the project, EU Inc. will not operate entirely independently of national laws. The company would still need to be entered into national business registers, and for key matters not regulated by the EU regulation, the law of the member state where the entity has its registered office would apply.

Dispute resolution and the practical application of the new regulations will also remain within the competence of national courts.

EU Inc. Registration – Faster, Digital Company Formation in the EU

The project envisions maximum simplification of setting up and running a company. EU Inc. is designed to operate based on fast, digital, and uniform procedures applicable throughout the European Union.

The key assumptions include:

• • registration in as little as 48 hours using standardized EU document templates,
  • the possibility of registration within up to 5 business days, even in the case of an individually drafted articles of association,

• incorporation costs capped at 100 euro,

• no minimum share capital requirement and the possibility of registering a company with 0 euro capital,
• full digitalization of corporate processes, including remote resolutions, e-voting, and online share issuance,
• no requirement for a physical presence before a notary,
• automatic data transmission to tax authorities, VAT systems, social security institutions, and registers of beneficial ownership.

In practice, EU Inc. is expected to significantly reduce bureaucracy, lower startup costs, and accelerate business operations within the EU market.

Who is EU Inc. for? Startups, investors, and companies operating in the EU

While the EU Inc. project is designed primarily for tech companies and startups aiming for rapid growth, the new European company model is set to offer substantial benefits to all entrepreneurs operating in the European market.

The new regulations are designed to facilitate attracting investors and funding thanks to more flexible operational rules, including the ability to create different classes of shares, issue no-par value shares, or utilize popular investment instruments such as SAFE and KISS.

The project also features a European Employee Stock Option Plan system (EU-ESOP). This is designed to simplify the implementation of uniform incentive schemes for employees across the EU, allowing companies to offer stock options or shares on preferential terms.

EU Inc. as a Tool for Expansion into the European Market

The founders of an EU Inc. will be free to choose the member state of registration.

In practice, this new legal form could significantly alter how international business is conducted in Europe.

For some entrepreneurs, EU Inc. could become an alternative to both establishing local subsidiaries and setting up foreign branches. It is also highly possible that entrepreneurs from outside Poland will be able to base their entry into the Polish market on the EU Inc. structure, reducing the need to build an extensive local corporate framework.

At the same time, many practical matters – especially tax, regulatory, and employment-related issues – will still depend on the laws of the country where the operational activities are carried out.

Setting Up EU Inc. — How Can a Polish Law Firm Help Entrepreneurs?

The EU Inc. regulation could unlock new opportunities for entrepreneurs and investors planning growth and expansion in the European market. However, despite the harmonization of rules, the operation of the new company will still require careful consideration of national regulations, particularly in employment and tax law.

A Polish law firm can support entrepreneurs with:

• preparing and tailoring corporate documentation to meet the needs of shareholders and investors,
• analyzing tax, employment, and compliance matters,
• planning expansion into EU markets.

Entrepreneurs planning to expand their business into the European market, including entering the Polish market, can begin analyzing available corporate structures now and prepare to take advantage of new solutions that EU Inc. may introduce.

Contact us to discuss your planned expansion, setting up a company in Poland, or choosing the most secure legal structure for operating in the EU. Planning legal, tax, employment, and compliance matters early on will help mitigate risks and better adapt your business model to international growth.