EU-Inc; A Move Towards a Pan-European Regulatory Framework for Europe’s Startups : exploring the need for a unified legal framework

Abstract

Harmonizing company law across the European Union has long been envisioned as a driver of economic integration and a catalyst for cross-border business growth. However, despite decades of regulatory initiatives, such as the creation of European Company Forms (ECFs) like the Societas Europaea (SE) and Societas Cooperativa Europaea (SCE), startups and small to medium-sized enterprises (SMEs) still encounter significant legal and administrative hurdles when trying to expand across Member States. This thesis introduces the concept of “EU-Inc,” a proposed pan-European incorporation framework specifically designed for startups, as a tool to critically examine the current regulatory environment. Using a mixed-methods approach that includes the empirical analysis of over 17,000 cross-border corporate transactions alongside legal and policy review, the study highlights persistent shortcomings in EU company law. Findings reveal that legal fragmentation, procedural complexity, and uneven policy implementation continue to impede SME internationalization, reinforcing the need for a new, accessible, and truly supranational corporate form. The study concludes by proposing future policy directions that integrate legal simplification, digital infrastructure, and decentralized ecosystem support.