The 28th regime FAQ (founder-focused)

Founder-focused answers on timeline, eligibility, EU-ESO, fundraising, and what to do before the law is final.

If you're new: start with Home + Progress:
https://the28thregime.eu/
https://the28thregime.eu/progress

The 28th regime is still a legislative proposal. This FAQ explains what is in the published text, what remains uncertain, and what founders can watch now.

Basics

Q: What is the 28th regime (in one sentence)?

A: It's a proposed optional EU-level company-law framework meant to reduce "27-systems" friction for innovative companies operating across the Single Market.

Q: Is it law already?

A: No. The Commission published the proposal on 18 March 2026, but it is not final law yet. The text can still change in Parliament and in the Council before adoption.

Q: Who is it for?

A: "Innovative companies" is the umbrella framing. Parliament messaging focuses on non-listed limited liability companies; eligibility will depend on the Commission draft.

Q: Does it replace national company forms?

A: The intent is "optional alongside national regimes", not replacement - but exact mechanics depend on the draft.

Timeline

Timeline snapshot

A compact visual tracker of the main milestones. The original timeline Q&A stays below.

  1. 20 January 2026Completed

    European Parliament adopts recommendations

    Political backing for a digital-first 28th regime concept for innovative companies.

  2. 18 March 2026Completed

    Commission publishes the EU Inc. proposal

    The file moves from political discussion to a real draft Regulation and supporting package.

  3. 19–20 March 2026Completed

    European Council gives political endorsement

    EU leaders elevate the file politically and call for agreement by the end of 2026.

  4. 23 March and 17 April 2026Completed

    Council Working Party sessions 1 and 2

    Technical examination has started. This is where national positions and amendment pressure begin to matter.

  5. 27 April 2026Next

    Working Party session 3

    A likely point for clearer member-state amendment signals on registration, scope, and friction points.

  6. 7 May 2026Scheduled

    Working Party session 4

    Further Council-side review, with Parliament-side direction expected in parallel.

  7. End of 2026Target

    Political target for co-legislator agreement

    This is an ambition, not a guarantee. The text can still move materially before then.

Q: What happened in January 2026?

A: On 20 January 2026, the European Parliament adopted recommendations for a 28th regime and backed a fast, digital-first concept for innovative companies. That was political input into the file, not the law itself.

Primary reference: https://www.europarl.europa.eu/news/en/press-room/20260116IPR32438/eu-competitiveness-meps-propose-new-legal-framework-for-innovative-companies

Q: What happened on 18 March 2026?

A: On 18 March 2026, the European Commission published the EU Inc. / 28th-regime proposal package. This is the first actual draft legal text, so the discussion is now about the published Regulation and how it may change during negotiations.

Primary reference: https://ec.europa.eu/commission/presscorner/detail/en/qanda_26_615

Q: Is it final now?

A: No. The file is now in the ordinary legislative procedure as a proposed Regulation. The current status in Parliament is still in the preparatory phase, which means the text can still be amended by the Parliament and the Council before final adoption.

Primary reference: https://oeil.europarl.europa.eu/oeil/en/procedure-file?reference=2026%2F0074%28COD%29

Q: What happened after publication?

A: On 19-20 March 2026, the European Council elevated the 28th regime politically and called for it to be agreed by the co-legislators by the end of 2026, on the basis of the Commission proposal of 18 March 2026.

Primary reference: https://www.consilium.europa.eu/media/lwhk3itd/en-20260319-european-council-conclusions.pdf

Q: What happens next?

A: Council-side technical examination has already started. The Working Party on Company Law met on 23 March 2026, the Internal Market working party handled the file on 26 March 2026, and further Company Law meetings are listed for 17 April, 27 April, and 7 May 2026. These are the points where national positions and early amendment signals may start to become visible.

Primary references:

https://www.consilium.europa.eu/en/meetings/mpo/2026/3/working-party-on-company-law-%28365509%29/

https://www.consilium.europa.eu/de/meetings/mpo/2026/3/wp-on-competitiveness-and-growth-compgro-internal-market-%28364373%29/

Q: Where do I track it without reading everything?

A: Use:
• Progress tracker: https://the28thregime.eu/progress
• Newsletter archive: https://the28thregime.eu/blog

The 28th regime consultation

Q: What was the 28th regime consultation?

A: The Commission collected stakeholder feedback through its "Have your say" process. That input helps shape the eventual draft.

Q: Can I still submit feedback?

A: The consultation phase referenced in trackers is closed, but future feedback windows can appear during negotiations. We'll flag them in the Updates archive.

Consultation hub:
https://ec.europa.eu/info/law/better-regulation/have-your-say_en

EU-Inc vs the 28th regime

Q: Is EU-Inc the same thing as the 28th regime?

A: EU-Inc is an ecosystem proposal and advocacy blueprint.
The 28th regime is the EU policy initiative that the Commission must translate into draft legal text.
EU-Inc influences debate; it is not itself law.

Q: Why does EU-Inc come up so often?

A: It's a detailed founder-centric blueprint (registry + fundraising docs + EU-wide equity tooling), which makes it a natural reference point.

Links:
https://www.eu-inc.org/
https://proposal.eu-inc.org/

Practical founder impact (what might change)

Q: Will this let me incorporate "once for the whole EU"?

A: Partly. The proposal creates one optional EU-wide company form with one core rulebook and a digital EU-level registration route. But it does not remove national systems entirely. An EU Inc. would still be registered in the business register of the Member State chosen for its registered office, and matters not covered by the Regulation would still fall back to national law in that Member State.

Q: Will it make fundraising easier?

A: Potentially, yes. The published proposal is much more concrete than before: it includes multiple share classes, non-par shares, flexible instruments for future equity, digital share transfers, and fewer formalities around subscriptions and transfers. That could make founder-investor documentation and financing rounds easier across borders. But in practice, "easier" will still depend on what survives the legislative process and how quickly investors, lawyers, and national systems adopt it.

Q: What about ESOP / employee stock options?

A: This is now one of the clearest parts of the draft. The proposal includes an EU employee stock option plan (EU-ESO). The key feature is timing of taxation: the warrant would not be taxed at grant, vesting, or exercise, but only when the shares received from it are sold. That is more concrete than the old political messaging. But the wider tax environment around companies and employment still remains largely national.

Q: Is it a Regulation or a Directive?

A: It is now a proposed Regulation. That matters because, if adopted, the core company-law rules would apply directly across the EU rather than being rewritten separately in 27 national transpositions. But it is still only a proposal at this stage, so Parliament and the Council can still amend it before anything becomes final.

Q: Can these practical details still change?

A: Yes. The current text is the Commission proposal, not the final law. Parliament and the Council can still amend core elements of the file before adoption, including parts founders care about most in practice.

What should I do now (actionable, non-legal)

Q: I'm incorporating this year - should I wait?

A: If you need to operate now, don't pause your business for an unfinalised law. Instead:
• choose the best current jurisdiction for your fundraising + hiring reality,
• document your cross-border pain points (these become negotiation "evidence" later),
• follow the watchlist so you can reassess when the draft appears.

Q: How do I stay updated with minimal effort?

A: Subscribe to the watchlist:
https://the28thregime.eu/

About the Site

Q: Who runs this?

A: Independent tracker project. Not affiliated with EU institutions.

Q: Do you offer consulting / services?

A: Not as a "promise today". Over time, we plan to add practical readiness tools and collaboration formats once draft text exists. For now, the focus is clean tracking + primary sources. If you are interested in the services or have idea on cooperation, reach out via contact form.

Q: Can I contribute?

A: Yes - send sources/corrections via:
https://the28thregime.eu/contact