European lawmakers have provided a cautious approval for a new EU-wide corporate framework, often referred to as the ‘EU Inc.’ or ’28th Regime.’ The proposal, which was introduced by the European Commission in March, aims to simplify business operations across the bloc, particularly for start-ups, by offering an optional rulebook for company registration.
During a vote in the European Parliament on Thursday, July 9, MEPs backed the inclusion of a consolidated corporate tax base, standardized tax returns, and simplified value added tax procedures within the framework. Under the current commission proposal, entrepreneurs could potentially create a company online for a fee of €100 with no minimum capital requirement.
Slovakian liberal Ludovít Ódor, speaking during a debate in Strasbourg, emphasized that the initiative supports the goal of fostering European business growth and talent. While acknowledging comparisons to the US state of Delaware—known for hosting many corporate headquarters—Ódor clarified that he does not advocate for a direct copy of that model, citing the importance of maintaining worker rights. He noted that the EU requires a unified regime to achieve necessary scale.
The proposal has drawn mixed reactions regarding its regulatory impact. René Repasi, the S&D lawmaker tasked with steering the parliament’s position on the law, expressed concerns last week that the commission’s plan leans too heavily toward liberalization. Repasi argued that it fails to adequately address safeguards against money laundering and the protection of workers. He has proposed incorporating provisions such as employee board-level participation, steward-ownership options, and the establishment of specialized judicial chambers to handle disputes.
Meanwhile, Ireland, which now holds the EU’s six-month rotating presidency, could be one of the main beneficiaries from the new regime, having positioned itself as a low corporate tax and low regulation model that has attracted a host of Big Tech companies as well as online retail giants such as Amazon and Temu. Peter Burke, Ireland’s minister for enterprise, tourism, and employment, stated on Wednesday that a central focus of their presidency will be to advance legislative files that enhance the operating environment for companies throughout the European Union.
