EU draft regulation aims to create new legal framework for startups
New EU regime could reduce legal complexity for startups operating across member states.
A draft initiative from the European Commission seeks to introduce a new legal structure designed to simplify how companies operate across the EU.
The proposal, often referred to as the ‘EU Inc’ initiative, explores the creation of a so-called ’28th regime’ that would exist alongside national corporate frameworks used by member states.
A concept that aims to provide startups and technology firms with a single legal structure that applies across the EU.
Instead of navigating different national rules in each country, companies could operate under a unified regulatory model intended to reduce administrative barriers and encourage cross-border innovation.
According to the draft, the initiative may rely on an EU regulation rather than separate national legislation. Such an approach could enable faster implementation, as the EU regulations apply directly across all member states without requiring domestic transposition.
However, the legal basis of the proposal could raise institutional concerns. Using a regulation as the primary mechanism may constitute an unconventional shortcut in the EU lawmaking, potentially sparking debate among policymakers over the approach’s scope and legitimacy.
The initiative reflects broader efforts within the Union to simplify regulatory frameworks and strengthen the competitiveness of European startups. If adopted, the ‘EU Inc’ model could reshape how young companies expand across the single market.
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