With 18 votes in favour, 4 against and 1 abstention, the Legal Affairs Committee approved series of recommendations for an upcoming Commission proposal on a new legal framework to support innovative companies, known as the “28th corporate regime”. According to MEPs, to boost cross-border mobility, investment and innovation, the EU needs harmonised rules tailored to SMEs, including startups and scaleups, aligning EU company law with the dynamic needs of modern businesses.

Unified European Company (S.EU)

MEPs want a new harmonised corporate form, the Unified European Company (S.EU), to be registered digitally within 48 hours. It should be a non-listed limited liability company with a seat in one of 27 EU countries and with the possibility to change its seat to another EU country without having to dissolve and re-establish.

This corporate form’s minimum required paid-in capital should be one euro and its use should not be limited only to innovative companies. MEPs call for the…