EUROPEAN COMMISSION UNVEILS EU–INC, THE NEW STARTUP FRAMEWORK
In a milestone announcement at the World Economic Forum in Davos, European Commission President Ursula von der Leyen announced what many of Europe's innovation ecosystems have long hoped for: the European Union is moving forward with “a new truly European company structure”, named “EU-Inc”.
HOW FRAGMENTATION HOLDS BACK EUROPEAN STARTUPS
“We live in an age where capital and data can cross Europe in a second. And business must be able to move just as freely. But as things stand, too many companies have to look abroad to grow and scale up.”
-Ursula von der Leyen
The paradox that many startups have faced until now is that, on paper, the European market offers access to 450 million consumers, yet in practice it is difficult for many companies to cross borders. Each time they expand into a new Member State, they must navigate a different set of rules. The result is a stagnating environment, where fragmented regulation discourages pan-European expansion, and European founders end up incorporating in the U.S. market, leading to a continuous drain of talent and capital from Europe.
The EU–Inc initiative grew out of the urgent need to overcome these fragmented corporate rules that have long held back European startups. Founders, investors, and industry groups called for a single, EU-wide legal structure to simplify cross-border growth. In response, through expert consultations, and policy discussions, the concept evolved into the “28th regime,” creating a single EU framework designed to help startups scale and operate seamlessly across the European Union.
EU–INC: STRUCTURE AND FEATURES
EU-Inc is conceived as an optional, EU-wide legal entity, that lets startups incorporate once and operate across all EU member states. It offers startups a single framework to expand and attract talent across Europe.
The initiative’s core elements are:
Unified EU legal entity: Reduce complexity in cross-border registration and operations
Central digital registry: Fully online onboarding in English, with incorporation aimed to be possible within 48 hours.
Simplified investment processes: Standardised templates and agreements designed to make cross-border fundraising quicker and more efficient.
EU-wide equity plans: Harmonised stock option schemes across borders, guaranteeing congruous equity for employees.
Together, these measures lay new ground for the European startup environment, where companies can scale, and attract investment across borders with the same confidence and simplicity as in the world’s most competitive markets.
EUROPE SETS THE STAGE FOR STARTUP GROWTH
For the Global Startup Awards, EU–Inc represents a milestone that resonates deeply with Europe’s startup journey. With strong European roots and a deep commitment to the region, GSA has seen how ambition and talent continue to thrive across the continent, often despite structural limitations. By creating a clearer path to scale, EU–Inc seeks to retain talent, attract global capital, and enable European startups and scale-ups to compete on the global stage.
This momentum will carry into May, when the Global Startup Awards Finale takes place in Malta as part of the EU-Startups Summit. We look forward to continuing the conversation with our community and shape the next chapter of Europe’s startup ecosystem.
Find out more about the event here: https://www.globalstartupawards.com/news-portal/the-global-startup-awards-finale-at-eu-startups-summit-2026