EU Inc.: New Legal Framework Promises to Register a Company in 48 Hours

The European Commission put forward a proposal in March to create a unified legal framework for company registration and operation across the European Union, dubbed “EU Inc.” This initiative, also referred to as the “28th regime,” aims to significantly reduce bureaucratic hurdles for entrepreneurs.

Under the proposed rules, any entrepreneur could register a company within 48 hours entirely online, for less than €100, without needing to provide minimum capital or involve a notary. The process would be fully digital, from registration to liquidation. Companies would receive a single EU-wide identification and VAT numbers without repeated document submissions.

The EU Inc. regime would be voluntary and complementary to existing national forms. It targets businesses that operate across multiple EU member states. Entrepreneurs could choose any EU country for registration without being a resident there, and then automatically gain access to the entire single market through a common digital interface.

Implementation is planned in three phases: from 2026 to 2027 for drafting proposals, 2027 to 2028 for political negotiations, and full rollout between 2028 and 2030. The Commission urges the European Parliament and the Council to reach an agreement by the end of 2026.

Latvian institutions have commented on the proposal. The Ministry of Justice noted that it is still under evaluation, with questions about practical implementation, interaction with national registries, transparency, and insolvency procedures. The Investment and Development Agency of Latvia (LIAA) sees both opportunities and risks. LIAA Director Ieva Jāgere stated that Latvia must adapt its regulatory framework, develop digital solutions, and enhance its investment environment to benefit from the initiative.

Key challenges include differing tax regimes across member states, which could lead to competition for company registrations. The Commission is working on a “Head Office Tax” system, but it is not finalized. Other issues include opening bank accounts fully digitally and ensuring legal consistency between EU and national laws.