Defence`s Feeds

Written by Issam Hallak

Obstacles to businesses’ cross-border operations and expansion constitute a major hurdle to an effective single market. The International Monetary Fund estimates that persistent barriers to the single market represent the equivalent of a 44 % and 110 % tariff on goods and services, respectively. The Letta report emphasised that a single business code would be a ‘game-changer’, making all business procedures – from establishment to end of activity – smoother and more transparent.

To address this issue, the European Commission published a proposal on 18 March 2026 for a regulation establishing the 28th regime corporate legal framework that introduces a new legal entity, EU Inc. Any company would be able to register in any Member State and opt in to the EU Inc. company form. The framework would allow quick, fully digital registration that is automatically valid across the whole EU, thereby benefiting the operations and expansion of EU Inc. businesses. In addition, the proposal provides for a single tax treatment of employee remuneration through stocks and enables employee participation schemes. It also provides for fast-track termination of solvent companies, and a legal framework for winding up insolvent small and young innovative companies, known as start-ups.

Parliament adopted a resolution in January 2026 supporting the approach but remained cautious about its chances of success.

Read the complete briefing on ‘The 28th regime corporate legal framework‘ in the Think Tank pages of the European Parliament.

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Fondé en 1961, (…)

- Agenda / Région parisienne

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