Philenews

EU: New Legal Framework for Innovative Companies

Published January 26, 2026, 05:09
EU: New Legal Framework for Innovative Companies

The European Union is preparing to introduce a new legal framework for innovative companies, aiming to strengthen their competitiveness and facilitate their cross-border activities. The framework provides for the creation of a new corporate form, the unified European company, which can be established digitally in 48 hours with a minimum capital of 1 euro. At the same time, the creation of a multilingual digital portal is proposed for seamless communication with authorities and the provision of information to investors. Members of the European Parliament have already approved a series of recommendations that will shape the final proposal of the European Commission. Member states will have the option to adopt a new corporate form or to incorporate pan-European rules into their existing national frameworks. Emphasis is placed on creating a harmonized set of rules, known as the “28th regime”, to ensure fair competition. The new framework also aims to facilitate companies' access to investment, through alternative forms of financing, and to protect investors. Optional protection systems are planned, such as the separation of voting rights and financial rights. In addition, measures are proposed to attract and retain talented workers, especially in the countries of Southeastern Europe. Finally, the Parliament supports the exploitation of research by European companies and the strengthening of cooperation between businesses, research institutions and SMEs. The creation of a specialized dispute resolution mechanism, which will operate in English, is proposed to facilitate business transactions.