Europe Unveils ‘EU Inc’ Plan to Compete with US Startup Scene

The European Commission announced a new initiative Wednesday allowing businesses to incorporate across all 27 EU nations within 48 hours for about $115. The plan aims to help European startups compete with the US market, where many European companies currently relocate to access unified business laws and larger markets.

European officials unveiled an ambitious plan Wednesday designed to help the continent’s startups better compete with American innovation hubs by dramatically streamlining business formation across member nations.

The European Commission’s new “EU Inc” initiative would allow companies to establish operations within just two days while following uniform regulations throughout all 27 European Union countries, rather than navigating dozens of different national legal frameworks.

This streamlined approach addresses a longstanding challenge where European entrepreneurs often relocate their ventures to the United States to access its unified market and consistent corporate regulations. The initiative represents part of Europe’s broader strategy to enhance economic competitiveness and prevent further talent drain to America.

“We need to incentivise companies to stay in Europe and encourage those who once looked elsewhere to return,” stated European Commissioner Michael McGrath. “Europe has the talent, ideas, and ambition — but too often, bureaucracy drives our best entrepreneurs elsewhere.”

Under the proposed system, entrepreneurs could establish an EU Inc entity online for approximately $115 within 48 hours, compared to the current process that can stretch across months while dealing with more than 60 different business formation documents across member states.

European officials project roughly 300,000 companies will utilize this new structure during its first decade of operation.

The initiative comes as Europe seeks to address a significant gap in high-value startups. While the EU generated more new companies annually than America between 2018 and 2023, Europe currently hosts only 110 “unicorn” companies valued at $1 billion or more, compared to 687 in the United States and 162 in China as of early 2025.

Companies choosing the EU Inc structure would gain streamlined access to Europe’s single market, along with more standardized employee stock option programs and simplified bankruptcy procedures that could attract additional investment capital.

However, these businesses would still face varying national employment standards, tax codes, and other regulations specific to each country where they operate.

McGrath acknowledged the proposal’s limitations, saying “It will not resolve every issue, but it can make a very important contribution. It does need to be implemented and travel alongside all of the other reforms, particularly in the area of addressing fragmentation and removing the barriers in the single market.”

The initiative requires approval from both EU member governments and the European Parliament before implementation.

Previous European attempts to create cross-border business structures have struggled to gain traction, including the 2004 Societas Europeaea program that primarily served larger corporations. Supporters believe EU Inc will succeed due to its digital-first approach and growing recognition among member nations about the urgent need to close the competitiveness gap with other major economies.