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Startups Win a Single EU Rulebook to Scale Across the Continent

Lisbon: Europe’s founders have long complained that crossing a border felt like starting a company all over again, with twenty-seven sets of company law standing between an idea and a continent-sized market. The Union is trying to answer that complaint, and startups sit at the centre of the plan. In March the Commission adopted what it calls the 28th regime, a voluntary single set of company rules that a firm can opt into wherever it operates.

The idea is to let a young company incorporate once under common rules and grow across the Union without re-registering, re-papering and re-lawyering in every market it enters. For a founder in Lisbon eyeing customers in Warsaw and investors in Amsterdam, the promise is a single legal identity that travels.

The 28th regime is one plank of a broader startup and scaleup strategy the Commission launched last year under the slogan of choosing Europe to start and scale. A planned European Innovation Act, expected this year, would go further, tackling the barriers that stop research from reaching the market and stranding good science in university labs.

The diagnosis behind the push is uncomfortable. Europe produces world-class research and plenty of promising startups, yet its most ambitious companies routinely decamp to the United States for the deep pools of late-stage capital they cannot find at home. The Union keeps inventing and watching others cash in.

Money is part of the answer. A new Scaleup Europe Fund is meant to channel billions into the continent’s most promising deep-tech firms, plugging the funding gap that opens just as a company needs the most cash to grow. A European Business Wallet, launched last autumn, gives firms a single digital identity to cut cross-border red tape.

Sceptics have heard grand strategies before and note that voluntary regimes only matter if founders actually use them and members do not undermine them with carve-outs. A rulebook nobody opts into changes nothing, and national bureaucracies rarely surrender control without a fight. Tax, insolvency and labour rules still vary sharply from one member state to the next, and a common company law shell will not by itself smooth every one of those seams.

Still, the direction is clear, and the detail is spelled out in the Commission’s plans for a European Innovation Act. For the entrepreneur in Lisbon deciding whether to build in Europe or book a flight west, the Union is finally trying to make staying the easier choice.