European version of 'Delaware' is born... the EU urgently announces the single legal entity system for startups 'EU Inc.'

The European Union(EU) has made a groundbreaking move aimed at removing long-standing administrative barriers that hinder growth and establishing a unified digital startup ecosystem.

Recently, European Commission President Ursula von der Leyen officially announced a single startup legal entity structure that can be used across Europe—the “EU Inc. (European Corporation)” model. This is known as the “28th regime,” allowing startups to be born and grow under standardized rules without having to comply with the different legal systems of the 27 member states.

■ “No more going to Delaware”… Reducing administrative costs is the ‘core’

For a long time, the biggest challenge in Europe’s startup ecosystem has been “fragmentation.” Companies founded in Lisbon that want to expand into neighboring countries must adapt to each country’s different legal establishment procedures, bankruptcy laws, and equity structure regulations. The huge legal costs and administrative delays incurred during this process are the main reasons why talented Europeans are moving to the US (Delaware, etc.).

The newly announced “EU Inc.” includes the following innovative measures to break this deadlock: ▲ Establishing legal entities online within 48 hours ▲ Eliminating mandatory notary presence ▲ Granting a single legal qualification valid across all 27 member states ▲ Applying standardized equity incentives and bankruptcy procedures, among others.

Especially by maintaining the autonomy of tax and labor laws at the national level while unifying the “legal framework” of companies at the European level, this creates an environment where investors can invest without worrying about legal risks in different countries.

■ Civil-led ‘bottom-up’ innovation victory… Blockchain and deep tech industries say “welcome”

The reason this announcement has garnered more attention is that it is not government-led but originated from the voice of the civil ecosystem. It is the result of a spontaneous petition signed by over 13,000 entrepreneurs and investors last year, which was ultimately transformed into policy.

According to TokenPost interviews, deep tech industries such as blockchain, artificial intelligence, and biotechnology, which are committed to borderless business, generally welcomed this initiative. Some analysts believe that if both virtual asset MiCA regulation and legal structures are unified, Europe will have the clearest and most efficient virtual asset and innovative technology business environment globally.

An industry insider commented, “In the past, a significant portion of seed round investments in Europe was spent on legal fees.” “Once EU Inc. is implemented, Lithuanian entrepreneurs can target a single market of 450 million people without relocating.”

■ The remaining challenge lies in ‘execution’… Can it overcome bureaucratic barriers?

Experts unanimously agree that the success of “EU Inc.” depends on the actual willingness of member states to implement it. The key is how to maintain a unified regulatory interpretation amid complex national interests. If each of the 27 countries interprets this regime in their own way, it could lead to another form of bureaucracy.

Nevertheless, this announcement is seen as a major turning point, as Europe’s first policy designed from the perspective of “builders” rather than “regulators.”

Whether Europe can leverage this “EU Inc.” to catch up with the US and China in unicorn production and lay the groundwork for countering technological hegemony is closely watched by the global startup community.