EU competitiveness: MEPs propose new legal framework for innovative companies

With 492 votes in favour, 144 against and 28 abstentions, MEPs adopted a series of recommendations on Tuesday that will feed into the Commission proposal for a new legal framework supporting companies in the EU that is expected in the coming months. Under this anticipated new framework, EU countries would be able to either create a new corporate form or incorporate EU-wide rules into an existing one. MEPs insist on a single harmonised set of rules known as the “28th regime” to ensure a level playing field for businesses across the EU.

Fast digital registration

This Unified European Company (S.EU) would apply to non-listed limited liability companies based in one of the 27 EU countries. Registration of an S.EU should be fully digital and able to be completed in 48 hours, requiring a minimum paid-in capital of only one euro. To promote the seamless operation of S.EUs within the internal market, including digital communication with authorities and digital information for investors, MEPs want a Commission-operated uniform digital multilingual portal accessible across all EU member states.

Attracting investment and talent

MEPs want to ease access for S.EUs to investment, including via alternative financing models, while ensuring optional protection schemes, such as the separation of voting and economic rights or profit distribution based on contractual agreements limited in time or amount. They also propose rules to attract and retain top talent in S.EUs including via employee stock-ownership plans and employee stock options.

Transfer of knowledge and specialised dispute-resolution

Parliament says S.EUs should be able to commercialise fundamental research and calls for measures that would ensure improved cooperation between SMEs, start-ups, scale-ups and research institutions in the EU. S.EUs should have access to specialised and accelerated dispute resolution mechanism that could be conducted in English.

Quote

Following the vote, rapporteur René Repasi (S&D, DE) said: “Today’s vote shows that Europe can and must fix what has long held innovators back against global competitors. Our vision of the S.EU would allow companies to set up within 48 hours, fully digitally and across borders. At the same time, the European Parliament wants to see robust social standards as part of this new regime.”

Background

Parliament’s priorities regarding the so-called 28th regime for EU companies are intended to feed into a legislative proposal by the Commission, expected by MEPs in the first quarter of 2026 and which should be backed by robust funding.

Press conference

The rapporteur will brief journalists following the plenary vote, on Tuesday 20 January 2026 at 15.00 CET in Strasbourg.