Time to act: tell Brussels why the 28th regime matters

At Tech.eu, we are firm champions of EU Inc., a grassroots pan‑European initiative launched in October 2024 by a coalition of top entrepreneurs, startup founders, and venture capitalists to establish a single, optional EU-wide legal entity for startups — referred to as the "28th Regime.

16,000 founders, investors and enthusiasts signed a petition in support. 

Just a few months ago, momentum was building for real change. With strong backing from startup leaders, investors, and even high-level voices like Enrico Letta and Mario Draghi, the idea of a true pan-European company form — one that could simplify cross-border fundraising, hiring, and growth — seemed within reach. 

But now, a draft report, the MEP Repasi Report on the 28th Regime, with recommendations to the Commission, bears little resemblance to what we've been championing.

It's set to be presented to MEPs tomorrow (Wednesday), and in its current form, could end up helping only traditional and family-run businesses — while further alienating talent, high-growth startups, and scaleups.

As Iwona Anna Biernat, Legal Strategy Lead at EU-Inc, notes:

 "What we need is one company form, one registry, one market. Not 27 flavours of the same headache."

Europe needs your help

EU Inc is aimed at establishing a single, optional EU-wide legal entity for startups — referred to as the "28th regime" — that sits alongside, not replaces, national company structures. It would include: 

• A unified legal entity under EU law: simplify cross-border incorporation and operations.
• Central EU registry: one-stop, fully digital onboarding in English. 
• Standardised investment documentation: harmonised legal templates to ease pan-European funding.
• Europe-wide stock option framework: enabling consistent equity for employees across borders.

Check out our earlier interviewwith the co-initiators of EU Inc., Andreas Klinger, an investor with Prototype Capital and former CTO of Product Hunt and Simon Schaefer, Founder and CEO of Factory and member of the Advisory Board at Allied For Startups and angel investor.

Why do we need the 28th Regime? 

For startups and scaleups, operating across borders in Europe is ridiculously complex, involving 27 splintered national systems. Raising investment often requires setting up multiple legal entities in different countries, each with its own rules, paperwork, and tax frameworks. 

This costly and time-consuming process puts European founders at a disadvantage compared to their US counterparts at a time when startups need to move at speed to innovate, solve industry painpoints, and remain globally competitive.  

Further, stock options are still governed by fragmented national rules, making it nearly impossible to offer employees consistent and competitive equity packages across borders. 

Hiring talent in another EU country often means navigating an entirely new legal and payroll system.

Instead of benefiting from the single market, many startups are stuck piecing together a patchwork of local solutions, which slows down their growth and discourages international ambition.

If you want more evidence of why Europe needs the 28th Regime, take a read of the Draghi report. 

A draft EU startup framework dominated by the old, pale, and stale 

Taking a look at the draft report on the 28th Regime, in the finest legalise you notice that while the "entities or persons from whom the rapporteur received input" list includes a broad mix of stakeholders, there's a dominance of legacy institutions such as banks, notarial chambers, and legal professional associations, many of which benefit from status quo national corporate systems and protecting their existing roles. 

Further, while Stripe, France Digitale, EU Inc, Startup Portugal, and ESNA (European Startup Nations Alliance) are included, they are outnumbered by traditional institutions, public bodies, and trade associations.

Also, most of those listed are from Germany, France, or Austria-based, which may bias the legislative design toward central European legal traditions, overlooking the realities of newer or smaller startup ecosystems (e.g., in CEE, Baltic states, Southern Europe) which have the most to gain from cross-border investment and a 28th regime.

You can help by having your say

The European Commission just opened its public consultation on the 28th-Regime. You have until 30 September — don't worry, we'll remind you. 

There are four easy ways you can have your say: 

1. Put something in writing. Tell Brussels why we need the 28th Regime. Got a horror story? Share it. Missed opportunity? Share it. Something that makes your life much harder as a founder? Share it. 
2. Fill in the questionnaire. It's quick, and it shows that the startup community is engaged and active on this issue.
3. If you have access, talk to your national Presidents, PMs, Justice ministers, and Economy ministers about how crucial EU Inc is.
4. Or tell us at Tech.eu. Politicians take their cues from the media — what they see, hear, and read directly influences the positions they take and the priorities they set.

Europe needs one company form, one registry, one market. Speak up before it’s too late.