Many entrepreneurs in Sweden look with envy at the United States. Every year, thousands of startups choose to incorporate in Delaware. The reason is simple: a unified, well-known and investor-friendly company form that works no matter where in the country you want to expand.
In Europe, the reality is very different. A Swedish startup that wants to scale in Germany, France or the Netherlands has to adapt to each country's corporate law, tax rules and registration procedures. This takes time, creates costs and drains energy that could have been spent on developing the product, building the team and meeting customers.
The EU now wants to change this. Through a new voluntary company form, the so-called 28th Regime, startups and scaleups would be able to grow across the entire Union with a single legal structure.
What does it mean
The EU wants to establish a new, optional corporate framework. Companies could choose to incorporate under a harmonised EU company law regime rather than navigate 27 different national systems. Registration and amendments would be fully digital and could be completed within 48 hours. It would also become easier to raise capital, issue different classes of shares and attract investors.
Benefits for startups
1. Easier cross-border establishment without the need to comply with multiple national regimes. 2. Digital processes that save time and resources otherwise spent on administration. 3. A clearer and more predictable structure for investors, making fundraising easier. 4. A stronger EU-wide corporate brand that can give Swedish startups more international legitimacy.
Challenges
There are still issues to resolve, including how the rules would interact with national insolvency law and labour law. Member States may also hesitate to give up part of their control. But the direction is clear. The EU wants to create better conditions for companies that want to grow across borders.
Conclusion
This initiative could become Europe's answer to Delaware. A modern, digital and harmonised EU framework could lower the barriers for international expansion and make the Union more competitive. For Swedish startups and scaleups, it could mean faster growth, easier access to capital and a stronger position in the global market.
What happens next
The European Commission has published a Call for Evidence and launched a 12-week public consultation, open until autumn 2025. This will be followed by dialogues with Member States, industry associations, investors and experts throughout the remainder of the year. A full impact assessment will then be prepared to evaluate the effects of the proposal.
The political timetable foresees that the Commission will present a legislative proposal in the first quarter of 2026. This means that the next 9 months will bring intense discussions on the design of the 28th Regime, but the initiative is now officially on the EU's legislative agenda.