In a significant move to enhance the business landscape within the European Union, Members of the European Parliament (MEPs) have recommended the adoption of a new legal framework tailored for innovative companies. This initiative aims to facilitate easier registration, mobility, and investment across the 27 member states.

As part of this proposal, a new corporate structure named the Unified European Company (S.EU) will allow digital registration within 48 hours, functioning as a non-listed limited liability company. This structure is designed to simplify the process for startups and scaleups, enabling them to change their company seat across EU countries without the need to dissolve and re-establish. The minimum capital requirement for this setup is set at a mere one euro, indicating a significant reduction in barriers to entry for new businesses.

The proposed framework includes harmonized rules for employee financial participation, which aims to attract and retain top talent by enabling mechanisms like employee stock ownership plans and stock options. Furthermore, the MEPs are advocating for the introduction of specialized dispute resolution mechanisms that could operate in English, thereby making the EU a more attractive destination for international talent and investment.

This legislative initiative has already passed through the Legal Affairs Committee with 18 votes in favor, four against, and one abstention. The next steps involve a vote in one of the upcoming plenary sessions, with hopes for the Commission to submit the proposal by the first quarter of 2026. This move aligns with the EU’s goal to foster an environment where innovative ideas can flourish, ensuring that Europe remains competitive on the global stage.