The EU has been a cultural hub and jumping off locale for untold thousands of entrepreneurs and freelancers.

Yet not every European country has been equally as helpful or beneficial in their freelance regulations and ease-of-founding for entrepreneurs. Countries like Estonia, Germany, the Netherlands and Spain have made public strides to welcome new businesses and reduce red tape, but there’re many more gaps in the EU market to fill.

Today’s ‘EU Inc’ introduces a new pan-European company structure under the 28th Regime. This formation allows for entrepreneurs to choose an all-new company type when building their business – one that seeks to unify across multiple EU nations.

What Is EU Inc, in plain English?

EU Inc is a new (totally optional) company type under EU law. 

It doesn’t replace company formations like German GmbHs or Spanish SLs, but simply adds a new company type designed for cross-border business. EU Inc lets you run an EU-wide business.

What EU Inc aims to offer

• One EU-recognised legal entity
• Fully digital company registration within 48 hours
• A central EU registry, instead of country-by-country registration
• Standardised legal documents for fundraising
• A pan-European stock option framework
• The same core capital rules across participating EU countries

For freelancers, this signals a shift toward a more borderless European market — something many have been asking for, for years and years!

EU Inc and the 28th Regime: A big step for European freelancers

In January 2026, at the World Economic Forum in Davos, the European Commission announced a major initiative aimed at making it easier to do business across Europe: EU Inc, also known as the “28th regime.”

The idea behind EU Inc is simple, but powerful. Instead of dealing with 27 different company systems, freelancers and founders would be able to run a business under one unified EU-wide company structure.

European Commission President Ursula von der Leyen summed up the challenge clearly:

“Too many companies have to look abroad to grow and scale up — partly because they face a new set of rules every time they expand into a new Member State.”

EU Inc is meant to remove that friction — and make Europe a place where businesses can scale.

🔗 Learn more about the initiative
🔗 Read European Commission President Ursula von der Leyen’s full speech

When Will EU Inc Actually Be Available?

This is where expectations need to be realistic. EU Inc isn’t right around the corner so to speak, but lawmakers have laid out a pretty viable timeline.

Current EU Inc timeline

• 2024–2025: EU Inc gains momentum through a founder-led policy movement
• January 2026: Official announcement at Davos
• 2026: EU legislative proposal expected
• 2026–2027: Negotiations between EU institutions and member states
• 2027–2028 (estimated): EU Inc may become available in practice

EU Inc still depends on member state adoption, which means timelines may vary — and some countries may take longer than others to implement it. In other words: EU Inc is coming, but it’s not here yet.

The Pros and Cons of EU Inc for Freelancers

Timelines aside, there are other challenges, and benefits to EU Inc adoption. For entrepreneurs and freelancers looking towards the Incorporated future, it’s wise to consider the pros and cons now.

Potential benefits

• Easier expansion across EU markets
• Faster, fully digital company setup
• Fewer legal differences between countries
• Better access to investment if you scale
• More consistent equity options for future teams

Potential challenges

• Not all EU countries may adopt EU Inc
• Taxes and labour laws will still be national
• Risk of added bureaucracy if implementation isn’t consistent
• Still several years away from being usable

EU Inc is a big step in the right direction — But what if you need a solution now? Is running a pan-EU company possible today for freelancers?

We’re pleased to say, ‘Yes!’

Running a pan-European company as a freelancer

For many freelancers the answer is simple, but that doesn’t mean everyone should make the switch from a local company formation to the EU Inc (28th Regime) formation. 

While not all EU countries have – or will – adopt the EU Inc setup, freelancers looking to build a true EU business will already find the EU Inc setup to be a simpler means of expansion in EU markets. For some, the familiarity of a fast, fully digital setup comes expected with the ‘EU’ tag. EU Inc will seek to make a pan-European freelance business simple by design, streamlined and accessible.

What does running a pan-European company mean for freelancers?

For freelancers and solopreneurs, a pan-European company setup usually means working with clients across the EU under one company, avoiding repeated registrations in multiple. 

That’s more possible than ever with EU Inc in play, and now freelancers can also:

• Simplify invoicing and cross-border operations
• Appear more credible to international clients
• Reducing admin, legal and compliance complexity

Many freelancers already operate internationally — but often with patchwork solutions that don’t scale well. EU Inc is designed to fix that long term.

How freelancers can run a pan-European business today

While EU Inc is being developed, thousands of freelancers already run EU-wide businesses using existing frameworks that work across borders.

One of the most popular and proven options today is Estonia’s e-Residency, combined with a fully managed solution like Xolo Leap.

Xolo Leap: The pan-EU setup that already exists

Xolo Leap lets freelancers run an EU-based company fully online, without needing to relocate or deal with multiple national systems.

With Xolo Leap, you get:

• An EU-recognised Estonian OÜ
• Remote management from anywhere in the world
• Simple invoicing for EU and international clients
• Accounting, reporting and compliance handled for you
• A setup that already works across borders

In practice, this already delivers many of the benefits EU Inc promises — without waiting years for legislation (and with the admin handled for you).

🔗 How to open a pan-European company with Xolo Leap

EU Inc vs Existing Solutions: The smart move?

If you’re deciding whether to wait for EU Inc or act now, ask yourself:

• Do I need a pan-European setup today?
• Am I already working with international clients?
• Do I want predictable, digital-first compliance?
• Do I want a setup that scales with my business?

For most freelancers, the answer is clear: Build now, adapt later. 

And this is where Xolo comes in… 

EU Inc is the Future — Xolo helps you get there today

EU Inc shows that the EU is taking cross-border freelancing seriously. A simpler, more unified business environment is on the way.

But while EU Inc is still being shaped, you don’t have to put your business on hold.

With Xolo Leap you can:

• Run a compliant pan-European business today
• Reduce admin and paperwork
• Focus on clients and growth

👉 Start your journey with Xolo in minutes