Described as “the EU’s 28th regime”, the optional, digital-by-default European corporate framework is aimed at making it easier for businesses to start, operate and grow across the EU.

At present, the EU has 27 national legal systems and more than 60 company legal forms, which EU officials argue can delay the setting-up of a company for weeks or months, slowing growth, raising costs and discouraging scale.

The proposed new regulation will provide a single harmonised set of corporate rules that companies can choose instead of navigating multiple national regimes.

European Commission president Ursula von der Leyen said: “Europe has the talent, the ideas and the ambition to become the best place for innovators. Yet today, European entrepreneurs who want to scale up face 27 legal systems and more than 60 national company forms.

“With EU Inc., we are making it drastically easier to start and grow a business all across Europe. Any entrepreneur will be able to create a company within 48 hours, from anywhere in the European Union, and fully online.

“This crucial step is just the beginning. Our goal is clear: one Europe – one market – by 2028.”

Michael McGrath, European commissioner for democracy, justice, the rule of law and consumer protection, said: “With its digital-by-default framework, entrepreneurs opting into the EU Inc. proposal will be able to set up a business within 48 hours, at a maximum cost of €100 – fast, affordable, and efficient.

“A once-only, fully digital submission process reduces administrative burdens, giving entrepreneurs more time to focus on growing their businesses.

“Under this new EU corporate legal framework, EU Inc. companies will benefit from simplified governance procedures throughout the lifecycle of the company. This simplicity ensures that talent and ideas stay in Europe, while attracting valuable investments.”

The EU Inc. proposal will now be discussed by the European Parliament and the Council.