The European Parliament’s Legal Affairs Committee has backed a set of recommendations calling for a unified EU corporate structure designed to help innovative firms scale

across borders. The proposal, endorsed on Thursday with 18 votes in favour, four against and one abstention, seeks to modernise company law and strengthen the bloc’s competitiveness.

At the heart of the initiative is the creation of a new legal form — the Unified European Company (S.EU) — a limited liability company that could be registered digitally within 48 hours and operate seamlessly in all 27 member states. Firms would be able to relocate their registered seat anywhere in the EU without undergoing dissolution and re-establishment, a process that currently burdens cross-border growth.

Under the committee’s vision, the S.EU would require only a symbolic €1 minimum capital and would not be restricted to innovative sectors. MEPs also call for a multilingual digital portal to centralise communication with authorities and improve transparency for investors.

Beyond easing administrative hurdles, lawmakers want the upcoming Commission proposal to expand financing options for high-growth companies. They argue that harmonised rules are needed to help businesses access capital beyond traditional venture funding.

To help firms compete for skilled workers, MEPs recommend EU-wide standards for employee stock ownership plans and stock options, tools widely used in other major tech markets. The text also proposes specialised, fast-track dispute resolution mechanisms — potentially in English — to help companies resolve commercial conflicts efficiently.

Rapporteur René Repasi (S&D, Germany) welcomed the committee’s approval, calling the initiative “an essential piece of the puzzle for completing our internal market.” Europe, he said, must ensure that “great ideas are not only born here but have the space to grow, attract investment, and scale in the EU.”

The full Parliament is expected to vote on the report in an upcoming plenary session. MEPs urge the European Commission to present the legislative proposal by early 2026 and to ensure sufficient budgetary backing for its implementation.