On 11 December 2025, the European Parliament’s Legal Affairs (JURI) Committee voted to approve key recommendations for a new EU-wide corporate framework for innovative firms. Dubbed the ‘28th corporate regime’, the package calls for harmonised rules tailored to startups, scaleups and other SMEs to boost cross-border mobility and investment. In practical terms, this means introducing an optional EU-level startup statute – a new Unified European Company (S.EU) – that companies could form online in just 48 hours with only €1 minimum capital.
Under the plan, an S.EU would be a non-listed limited liability company with its legal seat in any member state, freely transferable to another state without dissolving the company. A single multilingual digital portal would handle all filings and communications for S.EUs, dramatically cutting registration time and red tape. The idea is to create a one-stop ‘digital incorporation’ process that makes it far easier for EU startups to launch and scale across borders without facing 27 different sets of rules.
The heart of the proposal is the Unified European Company (S.EU), which would essentially be a Europe‑wide startup statute. Unlike today’s patchwork of national laws, the S.EU would give entrepreneurs a standard legal shell recognized in all 27 member states. According to Parliament’s recommendations, an S.EU could be incorporated online in 48 hours. It must have minimal capital (€1) and would initially operate under one member state’s national laws. Crucially, it could then transfer its legal seat to any other EU country without the costly process of liquidating and reincorporating.
In short, an EU startup could expand or move within the single market almost as easily as a domestic company. To further slash. MEPs also propose a single digital portal – an EU online registry – so that all S.EUs use the same forms, languages and procedures. These measures together promise to replace a maze of national filings with a smooth, uniform process, making cross‑border startups legally straightforward.
Beyond paperwork, the new framework addresses how startups raise money and keep staff. MEPs urge the Commission to include harmonised funding rules in its proposal. In practice this could mean common EU rules for venture funds, co‑investment schemes or crowdfunding platforms that invest in SEUs, plus safeguards for investors. The report explicitly calls for “alternative financing models” and diversified funding beyond traditional venture capital. To help startups attract and retain top talent, Parliament also recommends EU‑wide schemes for employee equity. For example, the S.EU could offer pan-European stock‑ownership plans or stock‑option programs, giving non‑cash compensation that works across borders.
Fast, specialized dispute-resolution in English is proposedtoo, so that cross‑border investors can resolve business disputes efficiently. These features aim to makeEurope’s startup landscape more enticing to both entrepreneurs and the financiers who back them, ona level playing field with the U.S. and other global hubs.
The Parliament’s push goes beyond corporate law. MEPs also want to simplify tax and compliance rules for innovative companies. In a parallel tax report (ECON/FISC committee), MEPs call for an EU‑wide tax framework for startups as part of the 28th regime. The idea is to eliminate duplicate reporting and align tax treatments so that an S.EU faces one set of rules rather than 27. Proposals include creating an EU Tax Data Hub to share information automatically and reviewing VAT, R&D credits and other laws for harmonisation.
Such reforms would relieve SMEs of heavy compliance costs (estimated at ~30% of their tax bills) and give them clearer, predictable obligations. This initiative comes at a critical time. Europe’s leaders worry that without a unified market for startups, innovative companies will relocate overseas. The 28th regime is meant to reverse that trend. In other words, fostering home‑grown talent is seen as vital for Europe’s digital and economic sovereignty. A harmonised startup statute and streamlined rules could help close Europe’s innovation gap with the US and China by making the EU a more agile, integrated ecosystem.
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Author: Shanise Cardona